Hammer Company plans to use activity$-$based costing to determine its

product costs. It presently uses a single plantwide factory overhead rate for

allocating factory overhead to products, based on direct labor hours.

The total factory overhead cost is as follows:

The company determined that it performed four major activities in the

Production Support Department. These activities, along with their budgeted

activity costs, are as follows:

Hammer estimated the following activity$-$base usage and units produced for

each of its three products:

REQUIRED:

Determine the factory overhead cost per unit for the LCD TV and Tablet

under the single plantwide factory overhead rate method. Use direct labor

hours as the activity base.

Determine the factory overhead cost per unit for the LCD TV and Tablet

under activity$-$based costing. Round to two decimal places.

Which method provides more accurate product costing? Why?