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 $1,250,000 total factory overhead cost. The $1,250,000 was for the planned levels of machine and direct labor hours shown in the following table. Machine hours Direct labor hours Production Department A 5,000 25,000 Production Department B 20,000 12,500 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 250 $125 Regular 1,000 $ 62.50 $ 25 $ 25 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 $8,750 Number of production runs 500,000 Number of setups 735,000 Number of units 6,250 $1,250,000 Number of shipments. 403 625 24,500 313 19 31 25 63 250 1,000 63 125 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