Trundle Inc. makes two styles of trophies, basic and deluxe, and operates at capacity. Trundle does large custom orders. Trundle 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.

1.	Calculate the budgeted unit cost of basic and deluxe trophies based on a single plant-wide 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 Trundle 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 plant-wide, department, and activity-based costing systems show different costs for the basic and deluxe trophies. Which system would you recommend and why?

Forming Department	Basic	Deluxe	Total
Direct materials	$28,800	$24,200	$53,000
Direct manufacturing labor	30,100	22,400	52,500
Overhead costs
Set up			8,850
General overhead			16,800
Assembly Department	Basic	Deluxe	Totaal
Direct Materials	5300	12700	18000
direct manufacturing labor	15800	22200	38000
overhead cost
general overhead			22800