Stillicum Corporation makes ultra light-weight backpacking tents. Data concerning the company's two product lines appear below: Direct materials per unit $ Deluxe 51.00 Standard $ 39.00 Direct labor per unit $ Direct labor-hours per unit Estimated annual production 9.00 0.70 DLHS 10,000 $ 7.60 units 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 overhead 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: Estimated Overhead Cost Expected Activity Standard Total 7,000 200 70,000 77,000 100 300 30 70 100 Activity Cost Pools and Activity Measures Supporting direct labor (direct labor-hours) Batch setups (setups) Safety testing (tests) Total manufacturing overhead cost $ 462,000 81,000 52,000 $ 595,000 Deluxe