Lynbrook, Inc. manufactures two types of wireless headphones-the Deluxe and the Standard. Data concerning these two product lines appear below: Deluxe Selling price per unit $140.00 Standard $99.00 Direct materials per unit $72.00 $53.00 Direct labor per unit $24.00 $12.00 Direct labor-hours per unit 2.0 DLHS 1.0 DLHS Estimated annual production and sales 20,000 units 80,000 units 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: Estimated total manufacturing overhead Estimated total direct labor-hours Required: $1,980,000 120,000 DLHS 1. Compute the product (profit) margins for the Deluxe and the Standard products under the company's traditional costing system. 2. The company is considering replacing its traditional costing system with an activity-based costing system that would assign its manufacturing overhead to the following four activity cost pools (the Other cost pool includes facility-sustaining costs and idle capacity costs). The company was also able to trace selling expenses of $40,000 and $70,000 directly to the Deluxe and Standard headphones respectively. Activities and (Activity Measures) Supporting direct labor (direct labor-hours) Estimated Expected Activity Overhead Cost Deluxe Standard Total $783,600 40,000 80,000 120,000 Batch setups (setups) Product sustaining (number of products) Other (facility-sustaining) 495,000 200 602,400 99,000 100 300 1 1 2 NA Total manufacturing overhead cost $1.980.000 Compute the product (profit) margins for the Deluxe and the Standard products under the activity-based costing system.