Problem 7-20 Vaughn Visuals produces tablets and books. Total overhead costs traditionally have been allocated on the basis of direct labor hours. After implementing activity-based costing, managers determined the following cost pools and cost drivers. They also decided that general costs should no longer be allocated to products. Activity Pool Binding Printing Product design General Department Costs $255,816 831,402 193,116 619,894 $1,900,228 Cost Driver Number of units Machine hours Change orders None Total overhead costs Other information is as follows: Units Direct materials cost per unit Direct labor cost per unit Direct labor hours Machine hours Change orders Tablets 62,600 $3.11 $4.17 25,300 126,000 1,400 Books 20,100 $10.44 $7.85 16,500 122,000 2,900 Calculate predetermined OH rate. (Round answer to 2 decimal places, e.g. 15.25.) Predetermined OH rate $ /DLH LINK TO TEXT LINK TO VIDEO Determine the unit product cost for tablets and books using the traditional costing system. (Round overhead rate and final answers to 2 decmial places, e.g. 15.25.) Tablets Books Unit product cost $ LINK TO TEXT LINK TO VIDEO Calculate ABC rates. (Round answers to 2 decimal places, e.g. 15.25.) ABC rates Binding /unit Printing /machine hour Product design $ /change order LINK TO TEXT LINK TO VIDEO Determine the unit product cost for Tablets and Books using the activity-based costing system. (Round all rates and final answers to 2 decmial places, e.g. 15.25.) Tablets Books Total unit cost $ LINK TO TEXT LINK TO VIDEO Show that General cost is the difference between the total overhead costs allocated to products under the traditional system and the total cost allocated to products under the activity-based costing system. (Round answers to o decmial places, e.g. 1,525.) Traditional ABC Difference Total allocated overhead $ LINK TO TEXT LINK TO VIDEO