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	6,600	26,400
Direct labor hours	33,000	16,500

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

	Deluxe	Regular
Units produced and sold	330	1,320
Unit cost of direct materials	$ 165	$ 82.50
Hourly direct labor wage rate	$ 25	$ 33
Direct labor hours in Department A per unit	2	2
Direct labor hours in Department B per unit	1	1

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	403	25	33
Machine setups	660,000	Number of setups	825	41	83
Inspections	970,200	Number of units	32,340	330	1,320
Shipment	8,250	Number of shipments	413	83	165
	$ 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 _____