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Addy Company has two products: A and B. The annual production and sales of Product Ais 1.700 units and of Product Bis 1.100 units. The

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Addy Company has two products: A and B. The annual production and sales of Product Ais 1.700 units and of Product Bis 1.100 units. The company has traditionally used direct labor hours as the basis for applying all manufacturing overhead to products. Product Arequires 0.3 direct labor hours per unit and Product requires 0.6 direct labor 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 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 8 Total Activity 1 $30,528 1.000 600 1.600 Activity 2 $17,385 1,700 200 1.900 General Factory $50.872 510 660 1.170 Total $98.785 (NOTE THE GENERAL FACTORY ACTIVITY COST POOL'S COSTS ARE ALLOCATED ON THE BASIS.QE DIRECT LABOR HOURS, NOTE DEPENDING ON ROUNDING YOUR ANSWERS SHOULD COME TO WITHIN A DOLLAR OF THE CORRECT ANSWER The predetermined overhead rate le activity rate) for Activity 2 under the activity-based costing system is closest to: 59.15 O $51.99 586.93 51023 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 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 0.6 direct labor 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 overhead activity cost pools-Activity 1. Activity 2 and General Factory-with estimated overticad 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 1.700 200 1.900 General Factory 550.872 510 660 1.170 Total $98.285 NOTE: THE GENERAL FACTORY ACTIVITY.COST POOLS.COSTS ARE ALLOCATED ON THE BASIS OE DIRECELADOR HOURSI NOTE DEPENDING ON ROUNDING, YOUR ANSWERS SHOULD COME TO WITHIN A DOLLAR OF THE CORRECT ANSWER. The overhead cost per unit of Product B under the activity based costing system is closest to 55066 O 526.09 $35.20 53816

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