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 $24.82 per unit while product B has been assigned $13.58 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 Driver	Driver Consumption
Machine setup	158,000	Setup hours	2,000
Materials handling	112,000	Pounds of materials	16,000
Electric Power	25,000	Kilowatt-hours	25,000

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

	A	B
Number of units produced	5,000	10,000
Direct materials cost	$32,000	$41,000
Direct labor cost	$41,000	$38,000
Number of setup hours	100	200
Pounds of materials used	1,000	1,000
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.)

	Cost per Unit
Product A
Product B