Carter Company manufactures two products, Deluxe and Regular, and uses a traditional two$-$stage cost allocation system. The first stage assigns all factory overhead costs to two production departments, A and B$,$ based on machine hours. The second stage uses direct labor hours to allocate overhead to individual products.

For the current year, the firm budgeted $$1,650,000$ total factory overhead cost. The $$1,650,000$ was for the planned levels of machine and direct labor hours shown in the following table.

Production Department A Production Department B

Machine hours $6,60026,400$

Direct labor hours $33,00016,500$

The following information relates to the firm$$s operations for the month of January:

Deluxe Regular

Units produced and sold $3301,320$

Unit cost of direct materials $ $165$ $ $82\mathrm{.}50$

Hourly direct labor wage rate $ $25$ $ $33$

Direct labor hours in Department A per unit $22$

Direct labor hours in Department B per unit $11$

Carter Company is considering implementing an activity$-$based costing system. Its management accountant has collected the following information for activity cost analysis for the current year:

Activity Budgeted Overhead Cost Driver Budgeted Quantity Driver Consumption

Deluxe Regular

Material movement $ $11,550$ Number of production runs $4032533$

Machine setups $660,000$ Number of setups $8254183$

Inspections $970,200$ Number of units $32,3403301,320$

Shipment $8,250$ Number of shipments $41383165$

$ $1,650,000$

Required:

$1.$ Calculate the unit cost for each of the two products under the existing volume$-$based costing system. $($Round "Regular unit cost" to $2$ decimal places.$)$

$2.$ Calculate the overhead per unit of the cost driver under the proposed ABC system. $($Round your answers to $2$ decimal places.$)$

$3.$ Calculate the unit cost for each of the two products if the proposed ABC system is adopted. $($Round your intermediate calculations to $1$ decimal place and final answers to $2$ decimal places.$)$

$1.$Deluxe Unit Cost $\_\_\_\_\_$

Regular Unit Cost $\_\_\_\_\_$

$2.$Deluxe Unit Overhead $\_\_\_\_\_$

Regular Unit Overhead $\_\_\_\_\_$

$3.$Deluxe Unit Cost $\_\_\_\_\_$

Regular Unit Cost $\_\_\_\_\_$