300 Chapter 9 Exercise 5 Data JHLR Corporation makes ultra-lightweight backpacking tents. concerning the company's two product lines appear below: Regular P45.00 Direct materials per unit P7.20 Direct labor per unit 0.6 LHS Direct labor-hours per unit 70,000 units Estimated annual production The company has a traditional costing system in which manufacturing overhead is applied to units based on direct labor-hours. Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below: Special P60.00 P9.60 0.8 DLHS 10,000 units Estimated total manufacturing overhead Estimated total direct labor-hours P290,000 50,000 DLHS Required 1. Determine the unit product costs of the Special and Regular products under the company's traditional costing system. 2. The company is considering replacing its traditional costing system for determining unit product costs for external reports with an activity-based costing system The activity based-costing system would have the following three activity cost pools: Estimated Overhead Cost Expected Activity Regular Special Total Activities and Activity Measures Supporting direct labor (direct labor-hours) Batch setups (setups) Safety testing (tests) Total manufacturing overhead cost P150,000 60,000 80,000 8.000 200 80 42.000 50 20 50,000 230 100 P290.000 Determine the unit product cost of the Special and Regular products under the activity-based costing system