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Carter Company manufactures two products, Deluxe and Regular, and uses a traditional two-stage cost allocation system. The fisst stage assigns all factory overhead costs to

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Carter Company manufactures two products, Deluxe and Regular, and uses a traditional two-stage cost allocation system. The fisst 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 curtent year, the firm budgeted $1,850.000 total factory overhead cost. The $1,850.000 was for the planned levels of machine and direct labor hours shown in the following table. The following information relotes to the firm's operations for the month of Janiary? Carter Company is considering inplementing an activity bosed costing system, its management accountant has collected the following information for actlvity cost analysis for the cuirent year: Carter Compahy is considering implementing an activity-based costing system. Its management accountant has collected the following information for activity cost analysis for the current year: 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.)

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