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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

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 $26.98 per unit, while product B has been assigned $15.22 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 Activity Costs Cost Drivers Activity Driver Consumption
Machine setup $ 172,000 Setup hours 2,000
Materials handling 162,000 Pounds of materials 18,000
Electric power 62,000 Kilowatt-hours 31,000

The following cost information pertains to the production of A and B, just two of Hakara's many products:

A B
Number of units produced 4,000 10,000
Direct materials cost $ 23,000 $ 38,000
Direct labor cost $ 28,000 $ 37,000
Number of setup hours 100 200
Pounds of materials used 2,000 2,000
Kilowatt-hours 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.)

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