easy to make were difficult to sell at margins considered reasonable, while products that seemed to take a lot of staff time were selling well despite recent price increases. A summer intern has suggested that the cost system might be providing misleading information. The controller decided that a good summer project for the intern would be to develop, in one self-contained area of the plant, an alternative cost system with which to compare the current system. The intern identified the following cost pools and, after discussion with some plant personnel, appropriate cost drivers for each pool. There were: Cost Pools Costs Activity Drivers Direct material cost Receiving 1,056,000 Machine setup Shipping 369.600 $ Production runs Units shipped 1,920,000 n this particular area, Cain produces two of its many products: Standard and Deluxe. The following are data for production for the latest full year of operations: Products Standard Deluxe Total direct aterial costs S944 000 $880,000 400,000 Total direct labor costs Total machine-hours 320,000 olal number or setups ria 16 000 22 Total direct labor-hours Number of units produced and shipped 19.200 8.000 32.000 16,000 The intern decides to look more closely at the manufacturing activity and determines that it can be broken down into two activities: production and engineering. Production covers the costs of ongoing manufacturing while engineering includes those activities dealing with engineering changes, design modifications, and so on. The costs attributed to production are $7,560,000 and the costs attributed to engineering are $3,432,000. After discussion with plant engineers, the intern decides that the best cost driver for engineering setups, because most f the work arises from changes in the way the product is run Required: .Compute the totals of the cost driver rates shown below. (Round intermediate calculations and "Manufacturing" answer to 2 decimal places.) Receiving Manufacturing of material dollars per machine-hour Engineering Machine setup per setup per setup per unit Shipping 2. What unit product costs will be reported for the two products if the revised ABC system is used? Standard Deluxe Direct Costs Overhead: Receiving Manufacturing Engineering Machine setup Shipping Total costs Number f units Unit cost