Smithville Industries has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on machine-hours (MH). The company has two products, Manual and Power, about which it has provided the following data: Manual Power Direct materials per unit S 24.50 S 64.90 Direct labor per unit S 7.80 S 23.40 Annual production units 40,000 15,000 The company's estimated total manufacturing overhead for the year is $2,700,000 and the company's estimated total machine hours for the year is 60,000 The company is considering using a variation of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity-based costing system appear below: Activities and Activity Measures Estimated Overhead Cost Machining support (MHS) $ 1,500,000 Setting up machines (setups) 400,000 Parts administration (part types) 800,000 Total S 2.700,000 Activities and Activity Measures Machining support (MH) Setting up machines (setups) Parts administration (part types) Total Estimated Overhead Cost $ 1,500,000 400,000 800.000 2.700.000 Manual Power Machining support: MHS 20,000 40,000 Setting up machines setups 2,000 500 Parts administration part types 1.600 400 Required: Data a. Determine the product cost per unit of each of the company's two products under the traditional costing system b. Determine the product cost per unit of each of the company's two products under activity-based costing system c. Which costing system is more accurate? How were the products miss-costed in the less accurate system