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 Scheduling and setup Material handling Costs $300,000 310,000 805,000 Activity Drivers 60,000 machine-hours 620 setups 1,610,000 pounds of material The company manufactures three models of water bosins (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 Total direct costs (noterial and labor) Total machine-hours Total number of setups Total pounds of material Total direct labor-hours Number of units produced Oval $ 30,000 30,000 100 500,000 3,500 3,800 Products Hound 5.80,000 12,000 300 300,000 1,500 2,000 Square $ 30,000 18.000 220 810,000 5.000 6.500 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 of the current cost system continues to be used? c. What are the cost driver rates for the three cost pools identified by the cost accountant? d. What unit product costs will be reported for the three products if the ABC system suggested by the cost accountants classification of cost pools is used? e. It management should decide to implement an activity-based costing system, what benefits should it expect