A company manufactures two products: A and B. The company's accounting records revealed the following per-unit costs

for direct material and direct labor:

Product A Product B

Production volume (units) 2,500 10,000

Direct material $40 $60

Direct labor:

2 hours at $12/hour $24

3 hours at $12/hour $36

Management is considering a shift to activity-based costing and gathered the following data:

Expected Activity

Activity Cost Pool Estimated Cost Activity cost driver Product A Product B Total

Setups $240,000 Number of setups 80 40 120

General factory $600,000 Direct labor hours 10,000 10,000 20,000

Machine processing $120,000 Machine hours 2,000 1,000 3,000

Assuming that actual activity is the same as expected activity, what is the unit product cost of Product B under activity-based

costing? Show formulas and work.