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: Cost Pools Costs Activity Drivers Receiving $ 2,536,800 Direct material cost Manufacturing 18,816,000 Machine hours Machine setup 1,612,800 Production runs Shipping $ 3,780,000 Units shipped In this particular area, Cain produces two of its many products: Standard and Deluxe. The following are data for production for the latest full year of operations: Products Standard Deluxe Total direct material costs $ 976,500 $ 600.000 Total direct labor costs $1,764,000 $1,029,000 Total machine-hours 441,000 399.000 Total number of setups 189 315 Total pounds of material 31,500 39,900 Total direct labor-hours 18.900 10,500 Number of units produced and shipped 63,000 21,000 The inter decides to look more closely at the manufacturing activity and determines that it can be broken down into two activities: production and engineering. Production covers the costs of ongoing manufacturing while engineering includes those activities dealing with engineering changes, design modifications, and so on. The costs attributed to production are $13,020,000 and the costs attributed to engineering are $5,796,000. After discussion with plant engineers, the intem decides that the best cost driver for engineering is setups, because most of the work arises from changes in the way the product is run Required: 1. Compute the totals of the cost driver rates shown below. (Round intermediate calculations and "Manufacturing" answer to 2 decimal places.) % of material dollars per machine-hour Receiving Manufacturing Engineering Machine setup Shipping per setup per setup per unit 2. What unit product costs will be reported for the two products if the revised ABC system is used? Standard Deluxe Direct Costs Overhead Receiving Manufacturing Engineering Machine setup Shipping Total costs Number of units Unit cost