uinn Mattress Corporation manufactures two types of mattresses, Dreamer and Sleeper. Dreamer has a complex design that uses gel-filled compartments to provide support. Sleeper is simpler to manufacture and uses conventional padding. Last year, Quinn Mattress had the following revenues and costs: Dreamer Sleeper Total Revenue $1,400,000 $1,000,000 $2,400,000 Direct Materials 600,000 300,000 900,000 Direct Labor 400,000 200,000 600,000 Indirect Costs: Administration 80,000 Production Setup 100,000 Quality Control 120,000 Sales and Marketing 200,000 Operating Profit $400,000 Quinn Mattress currently uses labor costs to allocate all overhead, but management is considering implementing an activity-based costing system. After interviewing the sales and production staff, management decides to allocate administrative costs on the basis of direct labor costs, but to use the following bases to allocate the remaining overhead: Activity Level Activity Cost Driver Dreamer Sleeper Production Setup Number of Production Runs 40 60 Quality Control Number of Inspections 30 70 Sales and Marketing Number of Advertisements 50 75 Assume that each Dreamer mattress is sold for $500 and that each Sleeper mattress is sold for $300. Required: a) Compute the unit cost of each mattress using a traditional costing system. b) Compute the unit cost of each mattress using the activity-based costing system. c) Explain the difference in the operating profit for each product under the traditional system and ABC