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 $1,700,000 total factory overhead cost. The $1,700,000 was for the planned levels of machine and direct labor hours shown in the following table. Production Department B Machine hours Direct labor hours Production Department A 6,800 34,000 27,200 17,000 The following information relates to the firms operations for the month of January: Units produced and sold Unit cost of direct materials Deluxe 340 $ 170 Hourly direct labor wage rate $ 25 Direct labor hours in Department A per unit 2 Regular 1,360 $85.00 $ 34 2 1 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: Activity Budgeted Overhead Cost Driver Budgeted Quantity Driver Consumption Deluxe Regular Material movement $ 11,900 Number of production runs 403 26 34 Machine setups 680,000 Number of setups 850 43 85 Inspections Shipment 999,600 8,500 Number of units Number of shipments 33,320 340 425 85 1,360 170 $1,700,000 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.)