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 $$10\mathrm{.}80$ per unit, while product B has been assigned $$3\mathrm{.}60$ 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 $100,000$ Pounds of materials $20,000$

Electric power $40,000$ Kilowatt$-$hours $40,000$

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 $4,00020,000$

Direct materials cost $ $42,000$ $ $54,000$

Direct labor cost $ $24,000$ $ $40,000$

Number of setup hours $400200$

Pounds of materials used $1,0003,000$

Kilowatt$-$hours $2,0004,000$