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.

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.

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?

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?

e$.$ If management should decide to implement an activity$-$based costing system, what benefits should it expect?

Complete this question by entering your answers in the tabs below.

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.$)$