Question 2: Job Costing vs. ABC Costing Time: 35 minutes Total: 18 marks Wyoming Manufacturing Limited has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labour-hours (DLHs). The company has two products, Widgets and Trinkets, about which it has provided the following data: Widgets Trinkets Direct Materials per unit $10.25 $60.70 Direct Labour per unit $2.00 $12.00 Direct labour hours per unit Annual production 45,000 10,000 0.20 1.20 The firm's estimated total manufacturing overhead for the year is $1,521,960 and the firm's estimated total direct labour hours for the year is 21,000. The company is considering using activity-based costing to determine its unit product costs. Data for this proposed activity based costing system appear below: Widgets Trinkets Total 9,000 12,000 21,000 Activities Supporting direct labour Setting up machines Parts administration 814 374 1,188 924 1,012 1,936 Estimated MOH cost $352,000 Activities & Drivers Supporting direct labow (DLH) Setting up machines (setups) Parts Administration (part types) Total $201,960 $968,000 $1,521,960 Required: a. Determine the unit product cost of each of the company's two products under the traditional costing system. (6 marks) I b. Determine the unit product cost of each of the company's two products under activity-based costing system. (12 marks)