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

	Deluxe			Standard
Direct materials per unit	$	65.00		$	53.00
Direct labor per unit	$	23.00		$	18.80
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	$	651,000
Estimated total direct labor-hours		77,000	DLHs

Required: ( Need help on)

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)		123,000	200	100	300
Safety testing (tests)		66,000	30	70	100
Total manufacturing overhead cost	$	651,000