Stillicum Corporation makes ultra light$-$weight backpacking tents. Data concerning the company$$s two product lines appear below:

Deluxe Standard

Direct materials per unit $ $54\mathrm{.}00$ $ $42\mathrm{.}00$

Direct labor per unit $ $12\mathrm{.}00$ $ $10\mathrm{.}00$

Direct labor$-$hours per unit $0\mathrm{.}70$ DLHs $1\mathrm{.}40$ DLHs

Estimated annual production $10,000$ units $50,000$ units

The company has a traditional costing system in which manufacturing overhead is applied to units based on direct labor$-$hours. Data concerning manufacturing overhead and direct labor$-$hours for the upcoming year appear below:

Estimated total manufacturing overhead $ $530,000$

Estimated total direct labor$-$hours $77,000$ DLHs

Required:

$1.$ Determine the unit product costs of the Deluxe and Standard products under the company$$s traditional costing system.

$2.$ The company is considering replacing its traditional costing system with an activity$-$based absorption costing system that would have the following three activity cost pools:

Activity Cost Pools $($and Activity Measures$)$ Estimated Overhead Cost Expected Activity

Deluxe Standard Total

Supporting direct labor $($direct labor$-$hours$)$ $ $385,0007,00070,00077,000$

Batch setups $($setups$)90,000200100300$

Safety testing $($tests$)55,0003070100$

Total manufacturing overhead cost $ $530,000$

Determine the unit product costs of the Deluxe and Standard products under the activity$-$based absorption costing system.