Question 7 20 pts 1 Pumpkin Corp. manufactures two products, Product C and Product D. The company estimated it would incur $130,890 in manufacturing overhead costs during the current period. Overhead currently is assigned to the products on the basis of direct labor hours. Data concerning the current period's operations appear below: Product C Product D Estimated volume 400 units 1,200 units Direct labor hours per unit 0.70 hour 1.20 hours Direct materials cost per unit $10.70 $16.70 Direct labor cost per unit $11.20 $19.20 REQUIRED: 1. Compute the cost per unit of each product using the traditional method (current method being used). (7 points) 2. The company is considering using an activity-based costing system instead of the traditional system. The information that would be used to determine the overhead cost is provided below. Compute the per unit cost of Product Cand Product D using the activity-based costing method. (13 points) Expected Activity Activity Estimated Overhead Costs Per product Activity Product C Product D Total Activity Center Machine setups $13,570 230 100 130 Purchase orders 91,520 2,080 1,270 General factory 25,800 1,720 1,440 $130,890