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 $2,100,000 total factory overhead cost. The $2,100,000 was for the planned levels of machine and direct labor hours shown in the following table.

	Production Department A	Production Department B
Machine hours	8,400	33,600
Direct labor hours	42,000	21,000

The following information relates to the firms operations for the month of January:

	Deluxe	Regular
Units produced and sold	420	1,680
Unit cost of direct materials	$ 210	$ 105.00
Hourly direct labor wage rate	$ 25	$ 42
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	$ 14,700	Number of production runs	403	32	42
Machine setups	840,000	Number of setups	1,050	53	105
Inspections	1,234,800	Number of units	41,160	420	1,680
Shipment	10,500	Number of shipments	525	105	210
	$ 2,100,000

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