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

DeluxeStandardDirect materials per unit$55.00$43.00Direct labor per unit$13.00$10.80Direct labor-hours per unit0.70DLHs1.40DLHsEstimated annual production10,000units50,000units

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$457,000Estimated total direct labor-hours77,000DLHs

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 ActivityActivity Cost Pools and Activity MeasuresEstimated

Overhead CostDeluxeStandardTotalSupporting direct labor (direct labor-hours)$308,0007,00070,00077,000Batch setups (setups)93,000200100300Safety testing (tests)56,0003070100Total manufacturing overhead cost$457,000

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