Exercise 2A-3 Activity-Based Absorption Costing as an Alternative to Traditional Product Costing (LO2- 5) Stillicum Corporation makes ultra light-weight backpacking tents. Data concerning the company's two product lines appear below: Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production Deluxe $ 65.00 $ 23.00 0.70 DLHS 10,000 units Standard $ 53.00 $ 18.80 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 $651,600 77,000 DLHS Required: 1. Determine the unit product costs of the Deluxe ond 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 Activity Estimated Overhead Activity Cost Pools and Activity Measures Cost Deluxe Standard Total Supporting direct labor (direct labor-hours) $ 462,000 7.000 70,000 77,000 Batch setups (setups) 123,000 100 300 Safety testing (tests) 66,000 30 Total manufacturing overhead cost $ 651,000 200 78 100 Determine the unit product costs of the Deluxe and Standard products under the activity based absorption costing system. 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 Activity Estimated Overhead Activity Cost Pools and Activity Measures 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 Determine the unit product costs of the Deluxe and Standard products under the activity-based absorption costing system. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the unit product costs of the Deluxe and Standard products under the company's traditional costing system. (Round your intermediate calculations and final answers to 2 decimal places.) Deluxe Standard Unit product cost mogui Required 2 > Expected Activity Activity Cost Pools and Activity Measures Supporting direct labor (direct labor-hours) Batch setups (setups) Safety testing (tests) Total manufacturing overhead cost Estimated Overhead Cost $ 462,000 123,000 66,000 $ 651,000 Deluxe Standard 7,000 70,000 200 100 30 70 Total 77,000 300 100 Determine the unit product costs of the Deluxe and Standard products under the activity-based absorption costing system. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the unit product costs of the Deluxe and Standard products under the activity based absorption costing system (Round your intermediate calculations and final answers to 2 decimal places.) Deluxe Standard Unit product cost