Cassidy Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHS). The company has two products. VIP and Kommander, about which it has provided the following data: Kommander Direct materials per unit VIP $ 27.50 $ 62.10 Direct labor per unit $ 15.60 $ 52.00 Direct labor-hours per unit 0.60 2.00 Annual production 43,400 18,400 The company's estimated total manufacturing overhead for the year is $4,631,016 and the company's estimated total direct labor-hours for the year is 62,840. The company is considering using a variation of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity- based costing system appear below. Estimated Overhead Activities and Activity Measures Assembling products (DLHS) Preparing batches (batches) Product support (product variations) Total Cost $2,414,000 613,816 1,603,200 $4,631,016