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36 Fairchild, |nc., manufactures two products, Regular and Deluxe, and applies overhead on the basis of direct labor hours. Anticipated overhead and direct labor time for the upcoming accounting period are $2,672,500 and 55,000 hours, respectively. Information about the company's products follows. Regular Estimated production volume: 1,500 units Direct materials cost: $43 per unit Direct labor per unit: 4 hours at $30 per hour Deluxe Estimated production volume: 7,000 units Direct materials cost: $57 per unit Direct labor per unit: 7 hours at $30 per hour Fairchild's overhead of $2,672,500 can be identied with three major activities: order processing ($257,500), machine processing ($1,935,000), and product inspection ($480,000). These activities are driven by number of orders processed, machine hours worked, and inspection hours, respectively. Data relevant to these activities follow. Orders Machine ours Inspection Processed Worked Hours Regular 170 17,500 7,000 Deluxe 330 25,500 9,000 Total 500 43,000 16,000 Required: A. Compute the pool rates that would be used for order processing, machine processing, and product inspection in an activity-based costing system. 3. Assuming use of activitybased costing, compute the unit manufacturing costs of Regular and Deluxe if the expected manufacturing volume is attained. (Round your intermediate calculations and nal answers to 2 decimal places.) C. How much overhead would be applied to a unit of Regular and Deluxe if the company used traditional costing and applied overhead solely on the basis of direct labor hours? Which of the two products would be undercosted by this procedure? Overcosted? (Round your intermediate calculations and final answers to 2 decimal places.)