Hayes Company manufactures two products, A and B. Actual year-end data regarding the two products follow:

Product	Direct Labor Hours per Unit	Annual Production	Total Direct Labor Hours
A	1.8	5,000 units	9,000
B	0.9	30,000 units	27,000
Total			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. Assume Hayes applies overhead at the end of the year using actual numbers so that under or over application is not an issue.

Calculate the cost per unit for each product using job order costing with direct labor hours as the base. (7 points) Create a table to organize your answer.

Now assume the company uses activity-based costing to apply overhead cost to products. Three activity centers have been identified as follows:

Annual Events or Transactions
Activity Center	Cost Driver	Traceable Costs	Product A	Product B	Total
Machine Setups	# of Setups	$360,000	50	100	150
Special Processing	CPU Minutes	$180,000	12,000	0	12,000
General Factory	Direct labor-hours	$1,260,000	9,000	27,000	36,000
Total		$1,800,000

Calculate the cost per unit for each product using activity-based costing.