Page 1 1 2 3 4 5 Reference: 05-01 Acton Company has two products: A and B. The annual production and sales of Product A are 800 units and of Product B are 500 units. The company has traditionally used direct labour-hours as the basis for applying all manufacturing overhead to products. Product Arequires 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: 8 9 7 10 11 12 > Product Total 8 Activity Expected Activity Estimated Cost Pool Overhead Product A Costs Activity 1 $14,487 500 Activity 2 564,800 2.500 General $12.736 240 Factory Total $92023 600 1.100 500 3.000 100 340 (Note: The General Factory activity cost pool's costs are allocated on the basis of Page 1: follows: 1 2 4 5 6 Activity Expected Activity Estimated Cost Pool Overhead Product A Costs Activity 1 $14.487 500 Activity 2 364,800 2.500 General $12.736 240 Factory Total 392.023 2 8 9 Product Total B 1600 11.100 500 3.000 100 340 10 11 12 > (Note: The General Factory activity cost pool's costs are allocated on the basis of direct labour-hours.) The overhead cost per unit of Product B under the traditional costing system is closest to: $54.13 $2.63 $4.32 $749