Cain Components manufactures and distributes various plumbing products used in homes and other buildings. Over time, the production staff has noticed that products they considered easy to make were difficult to sell at margins considered reasonable while products that seemed to take a lot of staff time were selling well despite recent price increases. A summer intern has suggested that the cost system might be providing misleading information.

The controller decided that a good summer project for the intern would be to develop,in one self-contained area of the plant, an alternative cost system with which to compare the current system. The intern identified the following cost pools and, after discussion with some plant personnel, appropriate cost drivers for each pool. There were:

|` THE intern SUGGESTS an AGE System WEing the FoEt driver= identified shave . What unit product costs will be reported for the two products if the ABC System is WEEN ? I DID not round your intermediate Computations . ! Standard DELUXE* Direct COSTS Overhead:! RECEIVing Manufacturing Machine Setup* Shipping Total `JETS Number of units Unit costGain Component manufactures and distributes various plumbing products used in homes and other buildings _ Over time , the production Staff has noticed that products they considerEd EASY to make WERE* difficult to SEI at margins considered reasonable while products that SEEmed to take a lot of staff time were Felling well despite recent price increases. A Summer intern has suggested that the cast system might be providing misleading information .` The controller decided that & good summer project for the intern would be to develop , in one SELF - contained* area of the plant , an alternative cost system with which to compare the current system . The inter identifier* the following cost pools and , after discussion with some plant personnel , appropriate cost drivers for Each pool . THERE WERE" LOST FOTIS COSTS Activity Drivers RECEIVING EYE, DED Manufacturing $ 525, 000 direct material cost Machine- hours.\\ Machine SETUp 1, 0EZ, 000 Number Of SETLOG Shipping $ 1. 053, 000 Units Shipped In this particular Eres . Cain produces two of its many products: Standard and DELUXE . The following are date for production for the latest full year of operations .` Products Standard Total direct matErie `JETS $ 4:40. 00 0 Total direct labor costs $ 1.51 . DOD $ 450.00 0 Total machine- hours TES. OUT 125. 20 0 Total number of SETUPS 145 Total pounds of matErie 38.090 ZE.OOD Total direct labor- hourE* 10. 000 B. TED Number of units produced and shipped 20.500 5.500 REQUIREd .` (a ) The current cost accounting System charges overhead to products based on machine - hours ."What unit product costs will be reported for the two products if the current cast system continues to be USEd ? ( DO` not round intermediate calculations . Round costs to the nearest dollar - ! Standard DELUXE Direct costs Overhead Total cost= Number of units* Unit cost