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 labor-hours as the basis for applying all manufacturing overhead to products. Product A requires 0.3 direct labor-hours per unit and Product B requires 0.2 direct labor-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 poolsActivity 1, Activity 2, and General Factorywith estimated overhead costs and expected activity as follows:

Estimated

Activity

Overhead

Expected Activity

Cost Pool	Costs	Product A	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	340
Total	$92,023

(Note: The General Factory activity cost pool's costs are allocated on the basis of direct labor-hours.) The predetermined overhead rate (i.e., activity rate) for Activity 1 under the activity-based costing system is closest to:

Select one:

a. $28.97.

b. $13.17.

c. $83.66.

d. $24.15.

The overhead cost per unit of Product A under the activity-based costing system is closest to:

Select one:

a. $86.97.

b. $70.79.

c. $81.20.

d. $11.24.