The following data are for the two products produced by Tadros Company.

	Product A		Product B
Direct materials	$	14 per unit	$	28 per unit
Direct labor hours		0.3 DLH per unit		1.5 DLH per unit
Machine hours		0.2 MH per unit		1.1 MH per unit
Batches		120 batches		240 batches
Volume		10,000 units		2,000 units
Engineering modifications		11 modifications		55 modifications
Number of customers		500 customers		400 customers
Market price	$	36 per unit	$	95 per unit

The company's direct labor rate is $20 per direct labor hour (DLH). Additional information follows.

Costs

Driver

Indirect manufacturing

Engineering support

$

26,000

Engineering modifications

Electricity

16,800

Machine hours

Setup costs

40,000

Batches

Nonmanufacturing

Customer service

73,000

Number of customers

5.

Which method of product costing gives better information to managers of this company?

	Departmental overhead rate method
	Plantwide overhead rate method
	Activity-based costing method