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Pursuant to the request, Jacob produced the following cost and driver information: Activity Expected Cost Driver Activity Capacity Other activities $2,000,000 Direct labor dollars $1,250,000

Pursuant to the request, Jacob produced the following cost and driver information:

Activity Expected Cost Driver Activity Capacity
Other activities $2,000,000 Direct labor dollars $1,250,000
Moving materials 900,000 Number of moves 18,000
Inspecting 720,000 Inspection hours 24,000
Reworking 380,000 Rework hours 3,800
Total overhead cost $4,000,000

Expected activity demands:

Regular Model Deluxe Model
Units completed 100,000 40,000
Direct labor dollars $875,000 $375,000
Number of moves 7,200 10,800
Inspection hours 6,000 18,000
Rework hours 1,900 1,900

Required:

1. Compute two different unit costs for each of the Cable Service Divisions products. What managerial objectives are being served by these unit cost computations? Round the answers to two decimal places.

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