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Acklin Company has two products A and B. The annual production and sales of Product A is 600 units and of Product B is 900

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Acklin Company has two products A and B. The annual production and sales of Product A is 600 units and of Product B is 900 units. The company has traditionally used direct labor-hours as the basis for applying all manufacturing overhead to products Product A requires os direct labor-hours per unit and Product 8 requires 0,3 direct labor hours per unit. The total estimated overhead for next period is $63.322 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 conting system would have three overhead activity cost pools-Activity 1, Activity 2. and General Factory with estimated overhead costs and expected activity as follows: Activity Cost Pool Est Ovhd Cost Expected Acty - Prod A Expected Acty-Prod B Total Activity 1 $ 18,900 700 Activity 2 $ 15,631 General Factory $ 28,791 300 270 900 200 100 1.000 1,100 570 Total $63.322 The predetermined overhead rate under the traditional costing system closest to 52100 51421 511109 $5051

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