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 $345,000 280,000 760,000 Activity Drivers 69,000 machine-hours 560 setups 1,520,000 pounds of material 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. Total direct costs (material and labor) Total machine-hours Oval $ 80,000 35,000 60 Products Round $ 70,000 12,000 280 Square $ 90,000 22,000 220 Total number of setups Total pounds of material Total direct labor-hours Number of units produced Required: 450,000 310,000 3,500 4,000 1,000 760,000 5,500 2,000 6,000 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? 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 accountant's classification of cost pools is used?