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. Production Production Department A Department B Machine hours 5, 080 20, 080 Direct labor hours 25, 080 12,508 The following Information relates to the firm's operations for the month of January: Deluxe Regular Units produced and sold 250 1,08 Unit cost of direct materials 125 $ 62.50 Hourly direct labor wage rate $ 25 $ 25 Direct labor hours in Department A per unit 2 Direct labor hours in Department B per unit 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: Budgeted Budgeted Driver Consumption Activity overhead cost Driver Quantity Deluxe Regular Material movement $ 8, 750 Number of production runs 403 19 25 Machine setups 500, 080 Number of setups 625 31 63 Inspections 735, 080 Number of units 4,506 250 1, 060 Shipment 6, 250 Number of shipments 313 63 125 $ 1, 250, 806 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