Babytime, Inc., manufactures two products, Piglets and Rattles. Piglets are the more complex of the two products, requiring more direct labor time and more machine time per unit than Rattles.

Manufacturing overhead is currently assigned to the products on the basis of direct labor hours. The company has gathered some activity information and is interested in the differences between its present costing method and activity$-$based costing. All overhead costs should be allocated to the products. The overhead cost pools and activity drivers are as follows:

Activity Pool

Overhead Costs

Total Driver Usage

Setup

$$258,000$

$3,700$

setups

Materials purchasing

$113,000$

$2,900$

purchase orders

Machining$/$fabricating

$138,000$

$27,300$

machine hours

Total overhead costs

$$509,000$

Other product information is as follows:

Rattles

Piglets

Number of units produced

$42,000$

$10,100$

Direct materials cost

$$15\mathrm{.}00$ per unit

$$30\mathrm{.}00$ per unit

Direct labor cost

$$5\mathrm{.}25$ per unit

$$14\mathrm{.}00$ per unit

Direct labor hours

$35,000$

$24,000$

Setups

$400$

$2,900$

Purchase orders

$2,360$

$680$

Machine hours

$8,500$

$20,000$

The managers at Babytime, Inc., were surprised that the activities associated with the production of Piglets were more extensive than they had imagined. They wondered if anything could be done to reduce the cost of producing Piglets.

Compare the number of activities $($setups$,$ purchase orders, and machine hours$)$ consumed per unit by Rattles and Piglets. $($Round answers to $3$ decimal places, e$.$g$.15\mathrm{.}251.)$