Triton Inc. makes two styles of trophies, basic and deluxe, and operates at capacity. Triton does large custom orders. Triton budgets to produce 10,000 basic trophies and 5,000 deluxe trophies. Manufacturing takes place in two production departments: forming and assembly. In the forming department, indirect manufacturing costs are accumulated in two cost pools, set up and general overhead. In the assembly department, all indirect manufacturing costs are accumulated in one general overhead cost pool. The basic trophies are formed in batches of 200 but because of the more intricate detail of the deluxe trophies, they are formed in batches of 50.

The controller has asked you to compare plantwide, department, and activity-based cost allocation. Triton Budgeted Information for the Year Ended November 30, 2020

Forming Department	Basic	Deluxe	Total
Direct materials	$45,200	$23,900	$69,100
Direct manufacturing labor	32,600	14,800	47,400
Overhead costs: Set up			7,110
Overhead costs: General overhead			21,330

Assembly Department	Basic	Deluxe	Total
Direct materials	$5,200	$2,000	$7,200
Direct manufacturing labor	15,700	21,300	37,000
Overhead costs: General overhead			3,700

1.	Calculate the budgeted unit cost of basic and deluxe trophies based on a single plantwide overhead rate, if total overhead is allocated based on total direct costs. (Don't forget to include direct material and direct manufacturing labor cost in your unit cost calculation.)
2.	Calculate the budgeted unit cost of basic and deluxe trophies based on departmental overhead rates, where forming department overhead costs are allocated based on direct manufacturing labor costs of the forming department and assembly department overhead costs are allocated based on total direct manufacturing labor costs of the assembly department.
3.	Calculate the budgeted unit cost of basic and deluxe trophies if Triton allocates overhead costs in each department using activity-based costing, where setup costs are allocated based on number of batches and general overhead costs for each department are allocated based on direct manufacturing labor costs of each department.
4.	Explain briefly why plantwide, department, and activity-based costing systems show different costs for the basic and deluxe trophies. Which system would you recommend and why?