1.) The predetermined overhead rate (i.e, activity rate for Activity 1 under the activity-based costing system is closest to which of the following? a. 13.17 b. 24.15 c. 28.97 d. 83.66

Required information Acton Company has two products: A and B. The annual production and sales of Product A is 800 units and of Product B is 500 units. The company has traditionally used direct labour hours as the basis for applying all manufacturing overhead to products. Product A requires 0.3 direct labour hours per unit, and Product B requires 0.2 direct labour hours per unit. The total estimated overhead for next period is $92,023. The company is considering switching to an activity-based costing system for the purpose of computing unit product costs for external reports. The new activity-based costing system would have three overhead activity cost pools-Activity 1, Activity 2, and General Factory-with estimated overhead costs and expected activity as follows: Activity Cost Pool Activity 1 Activity 2 General Factory Total Estimated Overhead Cost| $14,487 64,800 12,736 $92,023 Expected Activity Product Al Product B 500 600l 2,5001 500 240 100 Total 1,100 3,000 340 (Note: The General Factory activity cost pool's costs are allocated on the basis of direct labour hours.)