14. Addy Company has two products: A and B. The annual production and sales of Product A is 1,700 units and of Product B is 1,100 units. The company has traditionally used direc i requires unit. The total labor-hours as the basis for applying all manufacturing overhead to products. Product A 0.3 direct labor-hours per unit and Product B requires 0.6 direct labor-hours estimated overhead for next period is $98,785 The company is considering switching to an activity-based costing system for the computing unit product costs for external reports. The new activity- have three overhead activity cost pools-Activity 1, Activity 2, and General Fac estimated overhead costs and expected activity as follows purpose of -based costing system would Estimated OverheadExpected Activity Costs Product A Product B Total 600 1,600 1,900 Activities . $30,528 1,000 Activity 2.17,385 1,700 General Factory.... 0.872106601,170 Total 60 81 Note: The General Factory activity cost pool's costs are allocated on the basis of direct labor-hours.) overhead cost per unit of Product B under the traditional costing system is closest to: $50.66 B. $5.49 C. $26.09 D. $11.45 15. The following data pertains to activity and utility costs for two recent years: Year 2 Year!^ yo 10,00 Activity level in units.. Utilities cost observed $12,000 9,000? 2000 3000 Using the high-low method, the cost formula for utilities is: A. $1.50 per unit B. $1.20 per unit C, $3,000 plus $3.00 per unit D $4,500 plus $0.75 per unit