Horten Sporting Goods Corporation makes two types of racquets, tennis and badminton. The company uses the same facility to make both products even though the processes are quite different. The company has recently converted its cost accounting system to activity-based costing. The following are the cost data that Jane Price, the cost accountant, prepared for the third quarter of 2018 (during which Horten made 70,000 tennis racquets and 30,000 badminton racquets). Direct Cost Tennis Racquet (TR) Badminton Racquet (BR) Direct materials $ 28 per unit $ 20 per unit Direct labor 34 per unit 28 per unit Category Estimated Cost Cost