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2. XYZ Company produces and sells 2 products, Lambda and Gamma, and the production process goes through two departments. Traditionally Manufacturing Overhead (M/O) cost is applied on the basis of direct labor hours (DLH); estimated M/O cost is $ 5,757,500 and the estimated DLH is $12,250 for the most recent period. The team decided to replace traditional plantwide costing system to activity-based costing system. There are 3 activity cost pools which represent 3 activity areas at the plant. ACTIVITY Materials Handling Cutting Assembly ESTIMATED M/O COST $ 305,000 $ 3,100,000 $ 2,450,000 COST DRIVER Number of parts Number of parts DLH Lambda Gamma Units Manufactured 7,500 150 Total Dir. Material Cost $ 900,000 $ 40,000 Number of Parts 150,000 5,500 DLH 11,250 750 Direct Labor wage rate is $ 30 per hour. a) Compute total cost per unit (for lambda and gamma) using traditional plantwide approach. (round your numbers) b) Compute total cost per unit (for lambda and gamma) using activity-based approach. (round your numbers)