Fisher Fixtures manufactures three types of lighting fixtures, with model names of Silver, Gold, and Platinum. It applies all indirect costs according to an annual predetermined rate based on direct labor-hours. The plant controller has recommended that the company switch to an activity-based costing system. The controller's staff prepared the following cost estimates for next year (year 2) for the recommended cost drivers.

Activity	Recommended Cost Driver	Estimated Cost	Estimated Cost Driver Activity
Purchasing material	Number of purchase orders	$ 128,400	240	purchase orders
Receiving material	Direct materials cost	235,200	$ 2,940,000
Setting up equipment	Number of production runs	228,720	120	runs
Machine depreciation and maintenance	Machine-hours	79,080	15,816	hours
Ensuring regulatory compliance	Number of inspections	453,600	54	inspections
Shipping	Number of units shipped	1,080,000	600,000	units
Total estimated cost		$ 2,205,000

In addition, management estimated 45,000 direct labor-hours for year 2.

Assume that the following cost-driver volumes occurred in January, year 2:

	Silver	Gold	Platinum
Number of units produced	32,000	10,000	3,000
Direct labor-hours	2,000	1,200	400
Number of purchase orders	7	6	3
Direct materials costs	$ 97,500	$ 60,000	$ 37,500
Number of production runs	2	3	5
Machine-hours	700	175	100
Number of inspections	0	2	3
Units shipped	32,000	10,000	3,000

Labor costs are based on the contractual rate of $25 per hour.

Required:

Compute the predetermined rate for year 2 for use in the current product-costing system using direct labor-hours as the allocation base.

Compute the per-unit production costs for each model for January using direct labor-hours as the allocation base and the predetermined rate computed in requirement (a).

Compute the predetermined overhead rate for year 2 for each cost driver using the estimated costs and estimated cost driver units prepared by the controller's staff to be used in an ABC system.

Compute the per unit production costs for each product for January using the cost drivers recommended by the consultant and the predetermined rates computed in requirement (c). (Note: Do not assume that total overhead applied to products in January will be the same for activity-based costing as it was for the labor-hour-based allocation.)