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 Activity Costs Cost Drivers Activity Driver Consumption Machine setup $ 360,000 Setup hours 4,000 Materials handling 85,000 Pounds of materials 17,000 Electric power 50,000 Kilowatt-hours 25,000 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 $ 39,000 $ 38,000 Direct labor cost $ 22,000 $ 27,000 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.