Exercise 2A-3 Activity-Based Absorption Costing as an Alternative to Traditional Product Costing [LO2-5] Stillicum Corporation makes ultra light-weight backpacking tents. Data concerning the company's two product lines appear below: 10 points Deluxe Standard unit Dieet maeerials per s 26.00 Direct labor-hours per unit Estimated annual production 0.70 DLHS 1.40 DLHS 10,000 units units 50,000 eBook 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: Print Estimated total manufacturing overhead Estimated total direct labor-hours $586,000 77,000 DLHS References Required: 1. Determine the unit product costs of the Deluxe and Standard products under the company's traditional costing system. 2. The company have the following three activity cost pools: considering replacing its traditional costing system with an activity-based absorption costing system that would Expected Activity Estimated Overhead Activity Cost Pools and Activity Measures Supporting direct labor (direct labor-hours ) Batch setups (setups) Safety testing (tests) Deluxe Standard Total Cost $ 385,000 132,000 69,000 70,000 100 7,000 200 77,000 300 30 70 100 586,000 Total manufacturing overhead cost Determine the unit product costs of the Deluxe and Standard products under the activity-based absorption costing system