Company produces two products only (Product 1 and Product 2). A total o 140,000 of indirect manufacturing costs must be allocated to these two products. Using a traditional allocation based on direct labor hours ($1.60/DLH), the costs are allocated as follows: Product Units Direct labor Cost Cost hours allocated per unit Product 1 (0.50 DLH/unit) 100,000 50,000 $80,000 $0.80 Product 2 (0.50 DLH/unit) 75,000 37,500 $60,000 $0.80 Total 175,000 87,500 $140,000 The Production Manager suggested using a better allocation method using two activities (ABC System). Those consist of costs for setting up machines and for materials handling. Cost pools are set up for both activities with the following costs, cost drivers and usage of cost driver for each product: Activity Cost driver Setup Product 1 Product 2 Total activity Total cost usage usage driver 100 200 300 $120,000 Machine setups Materials handling Kilogram 50,000 50,000 100,000 $20,000 As an expert in controlling costs, you are asked to: 1. Determine the cost per unit using ABC System for both Product 1 and Product 2. 2. Identify the differences in indirect cost consumption between the traditional system and ABC system and comment on your results