Voss Visuals produces tablets and books. Total overhead costs traditionally have been allocated on the basis of direct labor hours. After implementing activity-based costing, managers determined the following cost pools and cost drivers. They also decided that general costs should no longer be allocated to products.

Activity Pool Department Costs Cost Driver

Binding $297,000 Number of units

Printing 955,500 Machine hours

Product design 234,000 Change orders

General 727,500 None

Total overhead costs $2,214,000

Other information is as follows:

Tablets Books

Units 62,500 20,000

Direct materials cost per unit$3.00 $10.00

Direct labor cost per unit $4.00 $8.00

Direct labor hours 30,000 19,200

Machine hours150,000 144,000

Change orders 1,500 2,400

predetermined OH rate $45

(A)Calculate ABC rates

Binding ?/unit

Printing 3.25/machine hour

Product design 60/change ordered

(B)Show that General cost is the difference between the total overhead costs allocated to products under the traditional system and the total cost allocated to products under the activity-based costing system.

Traditional ABC Difference

Total Allocated overhead ? ? ?