ABC Corporation manufactures two models of a product, a standard and a deluxe model. The following activity and cost information has been compiled: Product Standard Deluxe Number of Setups 3 7 Number of Components 30 50 Number of Direct Labor Hours 650 150 $40,000 $120,000 Overhead costs Assume a traditional costing system applies the $160,000 of overhead costs based on direct labor hours. Assume an activity-based costing system is used and that the number of setups and the number of components are identified as the activity-cost drivers for overhead. 1. Explain the difference between the costs obtained from the traditional costing system and the ABC system. Which system provides a better estimate of costs? Why