QUESTION ONE (15 marks) Select the best answer and bilite your selection for the following multiple choice questions. Show supporting calculations if question is Not multiple choice. Use the following to answer parts 1 & 2: Abel Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 200 units and of Product B is 400 units. There are three activity cost pools, with estimated costs and expected activity as follows: E Activity Estimated Expected Activity Cost Pool Cost Product A Product B Total Activity $16,660 600 100 700 Activity 2 $18.450 1.100 700 Activity 3 $9,731 60 160 220 1.800 1. The activity rate for Activity 2 under the activity based costing system is closest to which of the following? (2 marks) A) S10.25 B) S16.77 1 C) $24.91. D) S26.36. Activity - 18450/1800 - 10.25 2. The Overhead cost per unit of Product B is (4 marks Use the following information to answer parts 3 to 6 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 overbead costs and expected activity as follows: Estimated Activity Overhead Expected Activity Cost Pool Costs Product Product B Total Activity 1 $14,487 500 600 1.100 Activity 2 $64,800 2.500 500 3,000 General Factory $12.736 240 100 Total $92022 340 (Note: The General Factory activity cost pool's costs are allocated on the basis of direct Labour hours.) 3. The predetermined overhead rate under the traditional costing system is closest to which of the following? (2 marks) A) $184.05 B) S115.03 C) 5 70.79 D) $270.66 4. The overhead cost per unit of Product B under the traditional costing system is closest to which of the following? (2 marks) A) S 36.81 B) S 23.01. C) S 70.79 D) S 54.13 5. The activity rate for Activity 1 under the activity-based costing system is closest to which of the following? (2 marks) A) $13.17 B) $24.15 $28.97 D) 583.66 6. The total overhead cost of Product A under the activity-based costing system (3 marks) 15