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 $21.70 per unit, while product B has been assigned $10.44 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 PoolsActivity CostsCost DriversActivity Driver ConsumptionMachine setup$340,000Setup hours5,000Materials handling100,000Pounds of materials20,000Electric power24,000Kilowatt-hours24,000

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

ABNumber of units produced5,00010,000Direct materials cost$36,000$30,000Direct labor cost$27,000$34,000Number of setup hours100100Pounds of materials used2,0001,000Kilowatt-hours2,0002,000

Required:

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

Required:

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

CostPer Unit

Product A

Product B