Alice Company produces three products, nicknamed as Leopard, Snake, and Cat. Its manufacturing plant in Center City has three production departments and three service departments.

Departments	Support costs
Machining (MC)	$ 40,000
Plating (PL)	$ 50,000
Assembly (AS)	$ 15,000
Purchasing and Inventory (PI)	$ 120,000
Setup and scheduling (SS)	$ 70,000

Support costs are first traced to the six departments. The old cost accounting system allocated the service department costs to the production departments using the following cost drivers:

Department	Cost driver
Purchasing and Inventory	Material cost
Setup and scheduling	Direct labor hours
Quality control	Machine hours

The old cost accounting system applied support costs to the three products on the basis of direct labor hours. A different cost driver rate was determined for each department. The direct labor wage rate at the plant is $ 10 per hour.

Department	Leopard	Snake	Cat	Machine hour
Machining	7,000	2,800	2,200	5,200
Plating	3,500	1,700	1,800	1,900
Assembly	2,500	1,000	1,000	2,900

Product sales

Batch-related drivers

Material cost per unit

Product	Price	Sales units	Order	Setup	MC	PL
Leopard	$1.25	500,000	25	110	$0.30	$0.10
Snake	$1.20	200,000	10	43	$0.25	$0.10
Cat	$1.30	200,000	40	166	$0.28	$0.10

The profitability of the Amazon City's plant has been declining significantly for the past three years despite the successful launch of the new product - Jaguar - which has now captured more than a 60% share of its segment of the industry. In an assiduous endeavor to understand the reasons for its deteriorating profitability, the company has appointed a special task force. The task force is considering a new cost accounting system based on activity analysis. This system employs five cost drivers: three departmental DLH, setups (SET), and orders (ORD). Each departmental cost pool is divided into homogenous cost pools identified with a unique driver. The following table presents the percent of the departmental support costs that are put in each of the homogenous cost pools. The total amounts in the five cost pools are allocated to the three products based on their respective cost drivers.

Department	DLH	SET	ORD
Machining	30%	70%	0%
Plating	70%	30%	0%
Assembly	60%	40%	0%
Purchasing and Inventory	0%	40%	60%
Setup and schdeuling	?	?	?
Quality control	0%	70%	30%

Hana Sting is eader of the task force responsible for activity-based cost analysis. She interviewed Mr. Grum who was responsible for the setup and scheduling department, to determine the cost drivers for the departmental support costs. An excerpt from that interview is as follows: Sting: "How many people work in the setup and scheduling department?" Grum: "I have twelve people who work on setups. Three more are responsible for

production scheduling. I spend most of my time supervising them".

Sting: "How do you assign setup workers to production jobs?"

Grum: "Almost all the time they set up machines in the machining department. The effort depends only on the number of setups".

Sting: "On what does the time spent on scheduling depends?"

Grum: "It depends on the number of orders".

Sting: "So a large batch or order will require the same amount of setup and scheduling time as a small batch or order".

Grum: "Yes, that is absolutely right". Determine the product costs per unit using the new cost accounting system. Show as clearly as possible all the intermediate steps, including the cost driver rates, amounts in the five new cost pools, as well as a breakdown of product costs into each of their components.