Churchill Products is considering updating its cost system to an activity-based costing system and is interested in understanding the effects. The company's cost accountant has identified three overhead cost pools along with appropriate cost drivers for each pool. Cost Pools Utilities Costs $310,000 Acuviy ours 62,000 620 setups 1,580,000 pounds of material Scheduling and setup Material handling 310,000 790,000 The company manufactures three models of water basins (Oval, Round, and Square). The plans for production for the next year and the budgeted direct costs and activity by product line are as follows Oval Round Square $90.000 $90,000 8,000 Total direct costs (material and labor) Total machine-hours Total number of setups Total pounds of material Total direct labor-hours 80,000 30,000 80 24,000 300 240 470,000 3,500 3,600 340,000 1,500 2,200 770.000 5,000 6,000 Number of units produced Required: a. The current cost accounting system charges overhead to products based on direct labor-hours. What unit product costs will be reported for the three products if the current cost system continues to be used? (Do not round intermediate calculations. Round "Per unit cost" answers to 2 decimal places.) Oval Square Round Total cost Per unit cost c. What are the cost driver rates for the three cost pools identified by the cost accountant? (Round your answers to 2 decimal places.) Utilities Scheduling and setup per machine hour per setup Material handling per pound d. What unit product costs will be reported for the three products if the ABC system suggested by the cost accountant's classification of cost pools is used? (Do not round intermediate calculations, Round "Per unit cost" answers to 2 decimal places.) Round Oval Square Total cost Per unit cost e. If management should decide to implement an activity-based costing system, what benefits should it expect? O If management implemented an activity-based costing system it should be provided with a more thorough understanding of product costs. O If management implemented an activity-based costing system it will increase the sales of the company