Required information Cain Components manufactures and distributes various plumbing products used in homes and other buildings. Over time, the production staff has noticed that products they considered easy to make were difficult to sell at margins considered reasonable, while products that seemed to take a lot of staff time were selling well despite recent price increases. A summer intern has suggested that the cost system might be providing misleading information 148 points eBook The controller decided that a good summer project for the intern would be to develop, in one self- contained area of the plant, an alternative cost system with which to compare the current system. The Intern identified the following cost pools and, after discussion with some plant personnel, appropriate cost drivers for each pool. There were: Print Cost Pools Costs Activity Drivers Direct material cost Receiving Manufacturing Machine setup Shipping $ 600,000 5,500,000 HMachine-hours 900,000 1,000,000 References Production runs Units shipped In this particular area, Cain produces two of its many products: Standard and Deluxe. The following are data for production for the latest full year of operations Products Standard $175,000 $650,0e 122,000 145 11,000 6,700 14,000 Deluxe $225,000 Total direct material costs Total direct labor costs Total machine-hours Total number of setups Total pounds of material Total direct labor-hours Number of units produced and shipped $390,000 128,000 55 16,000 4,450 11.000 Required: a. The current cost accounting system charges overhead to products based on machine-hours. What unit product costs will be reported for the two products if the current cost system continues to be used? b. The intern suggests an ABC system using the cost drivers identified above. What unit product costs will be reported for the two products if the ABC system is used? Complete this question by entering your answers in the tabs below. Required A Number of units produced and shipped ces a. The current cost accounting system charges overhead to products based on machine-hours. What unit product costs will be reported for the two products if the current cost system continues to be used? b. The intern suggests an ABC system using the cost drivers identified above. What unit product costs will be reported for the two products if the ABC system is used? Required: Complete this question by entering your answers in the tabs below. Required A Required B The current cost accounting system charges overhead to products based on machine-hours. What unit product costs will be reported for the two products if the current cost system continues to be used? (Do not round intermediate calculations and round "Unit cost" answers to 2 decimal places.) Standard Deluxe Direct costs Overhead Total costs 0 Number of units Unit cost 0 Required A Required B