Gibson Manufacturing estimated its product costs and volume of production for 2019 by quarter as follows:

	First Quarter				Second Quarter				Third Quarter				Fourth Quarter
Direct raw materials	$	83,500			$	43,500			$	123,500			$	63,500
Direct labor		50,100				26,100				74,100				38,100
Manufacturing overhead		87,000				131,000				167,000				136,240
Total production costs	$	220,600			$	200,600			$	364,600			$	237,840
Expected units produced		16,700				8,700				24,700				12,700

Gibson Company sells a souvenir item at various resorts across the country. Its management uses the products estimated quarterly cost to determine the selling price of its product. The company expects a large variance in demand for the product between quarters due to its seasonal nature. The company does not expect overhead costs, which are predominately fixed, to vary significantly as to production volume or with amounts for previous years. Prices are established by using a cost-plus pricing strategy. The company finds variations in short-term unit cost confusing to use. Unit cost variations complicate pricing decisions and many other decisions for which cost is a consideration.

Required

1. a. Based on estimated total production cost, determine the expected quarterly cost per unit for Gibsons product.

2. b-1. Calculate the predetermined overhead rate.

3. b-2. Calculate the unit cost per quarter based on the predetermined overhead rate.

   answers to 2 decimal places.)

   	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
   Estimated cost		per unit		per unit		per unit		per unit

   Calculate the predetermined overhead rate. (Round your answer to 2 decimal places.)

   Predetermined overhead rate

   per unit

   Calculate the unit cost per quarter based on the predetermined overhead rate. (Round your intermediate calculations and final answers to 2 decimal places.)

   	First Quarter	Second Quarter	Third Quarter	Fourth Quarter
   Cost per unit