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Problem 9-62 given:
Cost Pools	Costs	Activity Drivers
Receiving	$600,000	Direct material cost
Manufacturing	5,500,000	Machine-hours
Machine setup	900,000	Production runs
Shipping	$1,000,000	Units shipped

	Products
	Standard	Deluxe
Total direct material costs	$245,000	$155,000
Total direct labor costs	$650,000	$250,000
Total machine-hours	150,000	100,000
Total number of setups	75	125
Total pounds of material	18,000	9,000
Total direct labor-hours	6,000	3,750
Number of units produced and shipped	20,000	5,000

Refer to Problem 9-62. 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 costs of ongoing manufacturing while engineering includes those activities dealing with engineering changes, design modifications, and so on. The costs attributed to production are $3,300,000, and the costs attributed to engineering are $2,200,000. 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. What unit product costs will be reported for the two products if the revised ABC system is used?"

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