LMN Corporation manufactures two products, Product A and Product B. Product B is fairly new, having been developed as an attempt to enter a market closely related to that of Product A. Product B is the more complex of the two products, requiring 3 hours of direct labour time per unit to manufacture compared to 1.5 hours of direct labour time for Product A. Overhead is currently assigned to the products on the basis of direct labour-hours. The company estimated it would incur a total of $396,000 in manufacturing overhead costs and produce 5,500 units of Product B and 22,000 units of Product A during the current year. Unit costs for materials and direct labour are:

	Product A	Product B
Direct material	$9	$20
Direct labour	$7	$15