q2c.

due by 1145pm est usa.

Exercise 5-9A Allocating costs with different cost drivers LO 5-2, 5-3

Wallace Publishing identified the following overhead activities, their respective costs, and their cost drivers to produce the three types of textbooks the company publishes.

		Type of Textbook
Activity (Cost)	Cost Driver	Deluxe	Moderate	Economy
Machine maintenance ($365,400)	Number of machine hours	300		800		1,800
Setups ($462,800)	Number of setups	21		10		9
Packing ($122,200)	Number of cartons	12		25		57
Photo development ($384,800)	Number of pictures	4,200		1,700		1,100

Deluxe textbooks are made with the finest-quality paper, six-color printing, and many photographs. Moderate texts are made with three colors and a few photographs spread throughout each chapter. Economy books are printed in black and white and include pictures only in chapter openings.

Required:

a.	Wallace currently allocates all overhead costs based on machine hours. The company produced the following number of books during the prior year.

Deluxe	Moderate	Economy
51,000	142,000	192,000

	Determine the overhead cost per book for each book type.(Round intermediate calculations and finalanswers to 2 decimal places.)

b.	Determine the overhead cost per book, assuming that the volume-based allocation system described in Requirement a is replaced with an activity-based costing system.(Round your answers to 2 decimal places.)