Stillicum Corporation makes ultra light-weight backpacking tents. Data concerning the company's two product lines appear below: Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production Deluxe $ 51.00 $ 9.00 0.70 DLHS 10,000 units Standard $39.00 $ 7.60 1.40 DLHS 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 over head Estimated total direct labor-hours $595,000 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: Expected Activity Estimated Overhead Activity cost Pools and Activity Measures 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 Deluxe Standard Unit product cost Deluxe Standard Unit product cost