7. Green Leather makes two jackets and uses a traditional costing system in which a single predetermined overhead rate is computed based on direct labor hours. Data for the two jackets for the upcoming year follow: Light $13.00 $6.00 $0.40 20,000 Dark $22.00 $3.00 $0.20 80,000 Direct materials cost per unit........ Direct labor cost per unit *The company's manufacturing overhead costs for the year are expected to be S576,000. Using the company's traditional costing system, computer the unit product costs for the two products. Management is considering an activity-based absorption costing system in which half the overhead would continue to be allocated on the basis of direct labor hours and half would be allocated on the basis of engineering design time. This time is expected to be distributed as follows during the upcoming year: Light 3,000 Dark 3,000 Engineering design time (in hours) r the two/preducts using t@ prop *Compute the unit product c costng system ed activity-based absorption Page 111