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CoursHeroTranscribedText: Exercise 5 JHLR Corporation makes ultra-lightweight backpacking tents. Data concerning the company's two product lines appear below: Special Regular P60.00 P45.00 Direct materials per unit P9.60 P7.20 Direct labor per unit 0.8 DLHs Direct labor-hours per unit 0.6 LHs Estimated annual production 10,000 units 70,000 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 P290,000 Estimated total direct labor-hours 50,000 DLHS Required: 1. Determine the unit product costs of the Special and Regular products under the company's traditional costing system. 2. The company is considering replacing its traditional costing system for determining unit product costs for external reports with an activity-based costing system. The activity based-costing system would have the following three activity cost pools: Estimated Expected Activity Activities and Activity Measures Overhead Cost Special Regular Total Supporting direct labor (direct labor-hours) P150,000 8,000 42,000 50,000 Batch setups (setups) 60,000 200 250 Safety testing (tests) 80.000 50 80 Total manufacturing overhead 20 100 cost P290,000 Determine the unit product cost of the Special and Regular products under the activity-based costing system

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