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7-20 Determining product costs using traditional and activity-based costing (LO 2) Voss Visuals produces tablets and books. Total overhead costs traditionally have been allocated on the basis of direct labor hours. After implementing activity-based costing, managers determined the following cost pools and cost drivers. They also decided that gen- eral costs should no longer be allocated to products. Activity Pool Binding Printing Product design General Total overhead costs Department Costs $ 297,000 955,500 234,000 727,500 $2,214,000 Cost Driver Number of units Machine hours Change orders None Other information is as follows: Tablets Books Units 62,500 20,000 Direct materials cost per unit $3.00 $10.00 Direct labor cost per unit $4.00 $ 8.00 Direct labor hours 30,000 19,200 Machine hours 150,000 144,000 Change orders 1,500 2,400 Required a. Determine the unit product cost for tablets and books using the traditional costing system. b. Determine the unit product cost for tablets and books using the activity-based costing system. c. Show that General cost is the difference between the total overhead costs allocated to products under the traditional system and the total cost allocated to products under the activity-based costing system