Page 1 2 3 SN 4 5 6 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: 7 8 9 10 11 12 Expected Activity Activity Estimated Cost Pool Overhead Product A Costs Activity 1 $14.487 500 Activity 2 $64,800 2.500 General $12.736 240 Factory Total 592023 Product Total B 600 1.100 1500 3.000 100 340 (Note: The General Factory activity cost pool's costs are allocated on the basis of 1 2 w 3 4 5 5 6 . Product Total B Activity Expected Activity Estimated Cost Pool Overhead Product A Costs Activity 1 $14,487 500 Activity 2 364,800 2500 General $12.736 240 Factory Total 592.023 7 B 9 600 500 > > 1.100 3,000 340 1100 10 11 12 > (Note: The General Factory activity cost pool's costs are allocated on the basis of direct labour-hours.) The predetermined overhead rate (ie, activity rate) for Activity 1 under the activity based costing system is closest to $24.15 $83.66. $13.17 $28.97