Hayes Company manufactures two products, A and B. Actual year-end data regarding the two products follow: Product Direct Labor Hours/unit Annual Production Total Direct Labor Hours A 1.8 5,000 units 9,000 B 0.9 30,000 units 27.000 36,000 Additional information about Hayes Company follows: Product A required $72 in direct material per unit, and product B required $50. The direct labor rate was $10 per hour. Manufacturing overhead totaled $1,800,000. Calculate the total cost per unit (and all of its components) for each product using the traditional job order costing with direct labor hours as the base. A Direct Materials/unit Direct Labor/unit Manufacturing overhead/unit Total Cost Total Direct Labor Product Direct Labor Hours/unit Annual Production Hours 1.8 9,000 5,000 units B 0.9 30,000 units 27.000 36,000 Additional information about Hayes Company follows: Product A required $72 in direct material per unit, and product B required $50. The direct labor rate was $10 per hour. Manufacturing overhead totaled $1,800,000. The company has decided to use activity-based costing (ABC) to apply overhead cost to products. Three activity centers have been identified. Calculate the cost per unit. Annual Events or Transactions Activity Center Cost Driver Treceable Costs Total Product Product B Machine Setups # of setups $360,000 150 50 100 Special Processing CPU minutes $180,000 12,000 12,000 0 General Factory Direct labor hours $1.260.000 36,000 9,000 27,000 $1,800,000 Calculate the total cost per unit (and all of its components) for each product using activity based costing. A B Direct Materials/unit Direct Labor/unit Manufacturing overhead/unit Total Cost For Hayes company in the previous two problems, explain why Product A changed in cost after switching to ABC costing