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Cain Components manufactures and distributes variaus plumbing products used in homes and other buildings. Over time, the production staff has noticed that products they considered easy to make were difficult to sell at margins considered reasonable, while products that scemed to take a lot of staff time were selling weil despite recent price increases. A summer intern has suggested that the cost system might be providing misleading information. The controller decided that a gond summer project for the intem would be to develap, in ane self-contained area af the plant, an ahernative cost system with which to compare the current system. The intern identified the following cost pools and, after discussion with some plant personnel, appropriate cost drivers for each pool. There were: In this particular area, Cain produces two of its many products: Standard and Deluwe. The following are data for production for the latest full year of operations. The intern decides to look more closely at the manufacturing activity and determines that it can be broken down into two activities: production and engineering. Production covers the casts of angoing manufacturing while engineering includes those activities dealing with engineering changes, design modifications, and so on. The costs attributed to production are $7,215,000 and the costs attributed to engineering are $4,732,000. After discussion with plant engineers, the intern decides that the best cost driver for engineering is setups, because most of the work arises from changes in the way the product is run. Required: a-1. Compute the totals of the cost driver rates shown below. a.2. What unit product costs will be reported for the two products if the revised ABC system is used? Complete this question by entering your answers in the tabs below. Compute the totals of the cost driver rates shown below. (Round intermediate calculations and "Manufacturing" answer to 2 decimal places.)

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