Utica Manufacturing (UM) was recently acquired by MegaMachines, Inc. (MM), and organized as a separate division within the company. Most manufacturing plants at MM use an ABC system, but UM has shsys used straditional product costing system. Bob Miller, the plant controller st UM, I decided to experiment with ABC and has asked you to help develop a simple ABC system that would help him decide if it was usefull. The controller's staff has identified costs for the first month in the four overhead cost pools along with sppropriate cost drivers for each pool Cost Pools Costs Activity Drivers Incoming Inspection $ 237,cee Direct material cost Production 1,350,000 Machine-hours Machine setup 720, cee Setups Shipping 458, eee units shipped The company manufactures two basic products with model numbers 309 and 510. The following sredste for production for the first month as part of MM Products 308 510 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 $175,00 55,000 65 18,500 6,500 $285,80 94,80e 95 9.500 9.500 22,800 Required: a. The current cost accounting system charges overhead to products based on machine-hours. Whstunt product costs will be reported for the two products of the current cost system continues to be used? b. A consulting firm has recommended using an actity-based costing system, with the activities based on the cost pools Identified by the cost accountant What are the cost driver rates for the four cost pools Identified by the cost accountant? c. What unit product costs will be reported for the two products of the ABC system suggested by the cost accountant's classification of cost pools is used: d. If management should decide to implement en activity-based costing system, what benefits should it expect? Complete this question by entering your answers in the tabs below. Required A | Required Rared D 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? (Round Intermediate calculations and "Per unit cost' answers to 2 decimal places) 308 610 Total cost Per un cost