Wallace Publishing identified the following overhead activities, their respective costs, and their cost drivers to produce the three types of textbooks the company publishes. Type of Textbook Activity (Cost) Cost Driver Deluxe Moderate Economy Machine maintenance ($335,400) Number of machine hours 210 760 1,630 Setups ($481,600) Number of setups 28 10 8 Packing ($155,200) Number of cartons 12 30 55 Photo development ($355,000) Number of pictures 4,100 1,600 1,200 Deluxe textbooks are made with the finest-quality paper, six-color printing, and many photographs. Moderate texts are made with three colors and a few photographs spread throughout each chapter. Economy books are printed in black and white and include pictures only in chapter openings. Required: a. Wallace currently allocates all overhead costs based on machine hours. The company produced the following number of books during the prior year. Deluxe Moderate Economy 50,000 149,000 199,000 Determine the overhead cost per book for each book type. (Round intermediate calculations and final answers to 2 decimal places.) b. Determine the overhead cost per book, assuming that the volume-based allocation system described in Requirement a is replaced with an activity-based costing system. (Round your answers to 2 decimal places.)

Wallace Publishing identified the following overhead activities, their respective costs, and their cost drivers to produce the three types of textbooks the company publishes Type of Textbook Activity (Cost) Machine maintenance (S335,400) Setups ($481,600) Packing ($155,200) Photo development ($355,000) Cost Driver Deluxe Moderate Economy 760 1,630 Number of machine hours Number of setups Number of cartons Number of pictures 210 28 12 10 30 4,100 1,600 1,200 Deluxe textbooks are made with the finest-quality paper, six-color printing, and many photographs Moderate texts are made with three colors and a few photographs spread throughout each chapter. Economy books are printed in black and white and include pictures only in chapter openings Required a. Wallace currently allocates all overhead costs based on machine hours. The company produced the following number of books during the prior year Deluxe Moderate Economy 50,000 149,000 99,000 Determine the overhead cost per book for each book type. (Round intermediate calculations and final answers to 2 decimal places.) Deluxe Moderate Economy Cost per book b. Determine the overhead cost per book, assuming that the volume-based allocation system described in Requirement a is replaced with an activity-based costing system. (Round your answers to 2 decimal places.) Deluxe Moderate Economy Cost per book