Question: Please help and show work for 1 and 2. Will rate and thumbs up! Select the most correct answer. Clearly indicate your answer. (2 marks

 Please help and show work for 1 and 2. Will rate

Please help and show work for 1 and 2. Will rate and thumbs up!

Select the most correct answer. Clearly indicate your answer. (2 marks each) Use the following to answer questions 1-4: Addy Company has two products: A and B. The annual production and sales of Product A is 1,700 units and of Product Bis 1,100 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 0.6 direct labour hours per unit. The total estimated overhead for next period is $98,785 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 factory overhead activity cost pools-Activity 1, Activity 2, and General Factory--with estimated overhead costs and expected activity as follows: Estimated Activity Overhead Expected Activity Cost Pool Costs Product A Product B Total Activity 1 $30,528 1,000 600 1,600 Activity 2 $17,385 1,700 1,900 General Factory $50,872 510 1,170 Total $98.785 (Note: The General Factory activity cost pool's costs are allocated on the basis of direct labour hours.) 1. The predetermined overhead rate under the traditional costing system is closest to which of the following? A) $9.15 B) $84.43 C) $43.48 D) $88.90 2. The overhead cost per unit of Product A under the traditional costing system is closest to which of the following? A) $50,66 B) $25.20 C) $25,33 D) $5.66 200 660

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