Stillicum Corporation makes ultra light-weight backpacking tents. Data concerning the companys two product lines appear below: Deluxe Standard Direct materials per unit $ 51.00 $ 39.00 Direct labor per unit $ 9.00 $ 7.60 Direct labor-hours per unit 0.70 DLHs 1.40 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 $ 595,000 Estimated total direct labor-hours 77,000 DLHs Required: 1. Determine the unit product costs of the Deluxe and Standard products under the companys 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: Expected Activity Activity Cost Pools and Activity Measures Estimated Overhead Cost Deluxe Standard Total Supporting direct labor (direct labor-hours) $ 462,000 7,000 70,000 77,000 Batch setups (setups) 81,000 200 100 300 Safety testing (tests) 52,000 30 70 100 Total manufacturing overhead cost $ 595,000 Determine the unit product costs of the Deluxe and Standard products under the activity-based absorption costing system.