Malcom Inc. manufactures two types of plastic bags, Disposable and Non disposable in medium size in packs including 60 bags. The Disposable has a complex process. The Non disposable is simpler to manufacture. Following is the data provided about these two products: Non disposable Disposable Direct Materials per pack $4 $14 Direct Labour per pack $2.00 $5.00 0.40 10 Direct labour hours per pack Annual production 40,000 20,000 The company has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labour cost. The firm's estimated total manufacturing overhead for the year is $557,960. The company is considering using activity-based costing to determine its pack product costs. Data for this proposed activity based costing system appear below: Activities Total Activity level Non disposable bags Activity level Disposable bags 25 35 60 Quality Control Marketing 45 15 60 Estimated MOH cost Activities & Drivers Quality Control Marketing $362,000 $195,960 $557,960 Total 3. Determine the pack product cost of each of the company's two products under activity- based costing system (35 marks)