Company A has 50% of its total variable manufacturing cost in labor and the other 50% in fuel. Company B has 20% of its total variable manufacturing cost in labor and the remainder in fuel. Suppose in a given year labor costs rise 14% and fuel costs rise 8%. Required: 1. Using the information above, calculate the percentage increase in total variable cost for each company. (Enter your answers as whole percentages rounded to one decimal place.) Percentage Increase in Total Variable Costs Company A % Company B % 2. Which company has the higher percentage increase in total variable cost? O Company A O Company B Hakara Company has been using direct labor costs as the basis for assigning overhead to its many products. Under this allocation system, product'A has been assigned overhead of $27.80 per unit, while product B has been assigned $13.23 per unit. Management feels that an ABC system will provide a more accurate allocation of the overhead costs and has collected the following cost pool and cost driver information: Cost Pools Machine setup Materials handling Electric power Activity Costs Cost Drivers $360,000 Setup hours 85,000 Pounds of materials 50,000 Kilowatt-hours Activity Driver Consumption 4,000 17,000 25,000 The following cost information pertains to the production of A and B.just two of Hakara's many products: Number of units produced Direct materials cost Direct labor cost Number of setup hours Pounds of materials used Kilowatt-hours A B 4,000 10,000 $39,000 $38,000 $22,000 $27,000 100 200 2,000 2,000 2,000 4,000 Required: 1. Use activity-based costing to determine a unit cost for each product. (Round your final answers to 2 decimal places.) Cost per Unit Product A Product B