Wayfarer Corporation is contemplating changing its cost system to an activity-based costing system and wants to...

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Wayfarer Corporation is contemplating changing its cost system to an activity-based costing system and wants to know more about the effects of doing so. The corporation's cost accountant has identified three overhead cost pools along with the cost drivers associated with each pool as follows: Cost Pools Utilities Delivery Assembly Costs Activity Drivers $5,420,000 180,000 machine hours 5,420,000 10,000 deliveries 10,940,000 2,000,000 pounds of material The corporation makes three models of kitchen sinks (Deluxe, Premium, and Standard). The plans for production for the next year and the direct costs that have been budgeted for activity by product are listed below: Products Deluxe Premium Standard Total direct costs (material and labor) $850,000 850,000 850,000 Total machine-hours 210,000 95,000 154,000 Total deliveries 310 620 480 Total pounds of 1,800,000 1,200,000 2,600,000 material Total direct 12,400 8,500 18,600 labor-hours Number of units 18,000 12,000 24,000 produced A. The current cost accounting system charges overhead to products on the basis of direct labor-hours. What unit product costs will be reported for the three products assuming the current cost system continues to be used? Wayfarer Corporation is contemplating changing its cost system to an activity-based costing system and wants to know more about the effects of doing so. The corporation's cost accountant has identified three overhead cost pools along with the cost drivers associated with each pool as follows: Cost Pools Utilities Delivery Assembly Costs Activity Drivers $5,420,000 180,000 machine hours 5,420,000 10,000 deliveries 10,940,000 2,000,000 pounds of material The corporation makes three models of kitchen sinks (Deluxe, Premium, and Standard). The plans for production for the next year and the direct costs that have been budgeted for activity by product are listed below: Products Deluxe Premium Standard Total direct costs (material and labor) $850,000 850,000 850,000 Total machine-hours 210,000 95,000 154,000 Total deliveries 310 620 480 Total pounds of 1,800,000 1,200,000 2,600,000 material Total direct 12,400 8,500 18,600 labor-hours Number of units 18,000 12,000 24,000 produced A. The current cost accounting system charges overhead to products on the basis of direct labor-hours. What unit product costs will be reported for the three products assuming the current cost system continues to be used?