Tiger Furnishings produces two models of cabinets for home theater components, the Basic and the Dominator. Data on operations and costs for March follow:

	Basic	Dominator	Total
Units produced	1,000	250	1,250
Machine-hours	4,000	2,000	6,000
Direct labor-hours	3,000	2,000	5,000
Direct materials costs	$10,000	$ 3,750	$ 13,750
Direct labor costs	64,500	35,500	100,000
Manufacturing overhead costs			174,100
Total costs			$287,850

The president of Tiger Furnishing is confused about the differences in costs that result from using direct labor costs and machine hours. Why are the two product costs different? Which method would you recommend to the president, and why?