XYZ Corporation manufactures two products, Product A and Product B. The following information is available:

• Product A:
  • Direct Materials: $10 per unit
  • Direct Labor: $15 per unit
  • Overhead: $5,000 total
• Product B:
  • Direct Materials: $15 per unit
  • Direct Labor: $10 per unit
  • Overhead: $7,500 total

Allocate overhead costs to each product using activity-based costing based on the following cost drivers:

• Product A: Machine Hours (500 hours)
• Product B: Number of setups (10 setups)