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 $1,500,000 total factory overhead cost. The $1,500,000 was for the planned levels of machine and direct labor hours shown in the following table. Machine hours Direct labor hours. Production Department A 6,000 30,000 Production Department B 24,000 15,000 The following information relates to the firm's operations for the month of January: Units produced and sold Unit cost of direct materials Hourly direct labor wage rate Direct labor hours in Department A per unit Direct labor hours in Department B per unit Deluxe 300 Regular 1,200 $ 150 $ 25 $ 75.00 $ 30 2 1 2 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 Material movement Machine setups Inspections Shipment Required: Budgeted Overhead Cost Driver Budgeted Quantity Driver Consumption Deluxe Regular $ 10,500 600,000 882,000 7,500 Number of units Number of production runs Number of setups Number of shipments 403 750 29,400 375 23 38 30 75 300 1,200 75 150 $ 1,500,000 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.) Answer is not complete.