Adelberg Company has two products: A and B. The annual production and sales of Product A is 1,850 units and of Product B is 1.250 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 requires 0.6 direct labor-hours per unit. The total estimated overhead for next period is $100,500. 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 Order Size--with estimated overhead costs and expected activity as follows: Expected Activity Activity Cost Pools Activity 1 Activity 2 Order size Total Estimated Overhead Costs $ 31,055 17,688 51,757 $100, 500 Product A 1,150 1,850 555 Product B 750 350 750 Total 1,900 2,200 1,305 (Note: The Order Size activity cost pool's costs are allocated on the basis of direct labor hours.) The predetermined overhead rate under the traditional costing system is closest to: Multiple Choice 0 $8.04 per DLH Adelberg Company has two products: A and B. The annual production and sales of Product A is 1850 units and of Product Bis 1,250 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 requires 0.6 direct labor hours per unit. The total estimated overhead for next period is $100.500. 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 Order Size-with estimated overhead costs and expected activity as follows: Expected Activity Activity Cost Pools Activity 1 Activity 2 Order Size Total Estimated Overhead Costs $ 31,055 17.688 51,757 $100,500 Product 1,150 1.850 555 Product B 750 350 750 Total 1,900 2.200 1,305 Note: The Order Size activity cost pool's costs are allocated on the basis of direct labor-hours) The predetermined overhead rate under the traditional costing system is closest to: Multiple Choice o $804 per DH Total $100,500 (Note: The Order Size activity cost pool's costs are allocated on the basis of direct labor-hours.) The predetermined overhead rate under the traditional costing system is closest to: O $8.04 per DUH O $39.66 per DH O $7701 per DH $16.34 per DH