Huron Furniture 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. Cost Pools Costs Activity Drivers Utilities $ 240,000 60,000 machine-hours Scheduling and setup 319,000 580 setups Material handling 755,000 1,510,000 pounds of material The company manufactures three models of tables (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: Products Oval Round Square Total direct costs (material and labor) $ 90,000 $ 80,000 $ 80,000 Total machine-hours 32,000 9,000 19,000 Total number of setups 90 270 220 Total pounds of material 460,000 290,000 760,000 Total direct labor-hours 3,400 1,900 5,500 Number of units produced 4,100 1,900 6,100 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?(Do not round intermediate calculations. Round your final answers to nearest dollar amount. Omit the "$" sign in your response.) Product Unit cost Oval $ Round $ Square $ (c) What are the cost driver rates for the three cost pools identified by the cost accountant? (Round your answers to 2 decimal places. Omit the "$" sign in your response.) Utilities $ per machine-hour Scheduling and setup $ per setup Material handling $ per pound (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? (Do not round your intermediate calculations. Round your final answers to 2 decimal places. Omit the "$" sign in your response.) Product Unit cost Oval $ Round $ Square $ (e) If management should decide to implement an activity-based costing system, what benefits should it expect? rev: 11_17_2012