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 $19.92 per unit, while product B has been assigned $11.86 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	$ 284,000	Setup hours	4,000
Materials handling	75,000	Pounds of materials	15,000
Electric power	26,000	Kilowatt-hours	26,000

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	5,000	10,000
Direct materials cost	$ 25,000	$ 33,000
Direct labor cost	$ 28,000	$ 39,000
Number of setup hours	100	100
Pounds of materials used	1,000	2,000
Kilowatt-hours	2,000	2,000

Required:

1. Use activity-based costing to determine a unit cost for each product. (Round your final answers to 2 decimal places.)

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 $19.92 per unit, while product B has been assigned $11.86 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	$ 284,000	Setup hours	4,000
Materials handling	75,000	Pounds of materials	15,000
Electric power	26,000	Kilowatt-hours	26,000

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	5,000	10,000
Direct materials cost	$ 25,000	$ 33,000
Direct labor cost	$ 28,000	$ 39,000
Number of setup hours	100	100
Pounds of materials used	1,000	2,000
Kilowatt-hours	2,000	2,000

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