Rothchild, Inc. manufactures both regular and deluxe products and they apply overhead on the basis of direct labour hours. The firm expects overhead and direct labor time for the upcoming accounting period to be $1,600,000 25,000 hours, respectively.

Company product information:

Regular: estimated production volume = 3,000 units

direct materials cost = $28 per unit

direct labor per unit = 3 hours, $15 per hour

Deluxe: estimated production volume = 4,000 units

direct materials cost = $42 per unit

direct labor per unit = 4 hours, $15 per hour

Rothchild's overhead of $1,600,000 can be identified with 3 activities: order processing ($250,000), machine processing ($1,200,000), and product inspection ($150,000). These activities are driven by number of orders processed, machine hours worked, and inspection hours, respectively. The following is the data related to these activities:

	ORDERS PROCESSED	MACHINE HOURS WORKED	INSPECTION HOURS
REGULAR	320	16,000	4,000
DELUXE	180	24,000	6,000
TOTAL	500	40,000	10,000

A. Calculate the pool rates that would be used for order processing, machine processing, and product inspection in an activity-based cost system.

B. Given the use of activity-based costing, calculate the unit manufacturing costs of regular and deluxe if the expected manufacturing volume is achieved.