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Adelberg Company has two products: A and B. The annual production and sales of Product Als 2,650 units and of Product is 2,050 units. The

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Adelberg Company has two products: A and B. The annual production and sales of Product Als 2,650 units and of Product is 2,050 units. The company has traditionally used direct labor-hours as the basis for applying all manufacturing overhead to products Product Arequires 0.4 direct labor hours per unit and Product B requires 07 direct labor hours per unit. The total estimated overhead for next period is $109,300. 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: Activity Cost Pools Activity 1 Activity 2 Order Size Total Estimated Overhead Costs $ 33,774 19,237 56,289 $109,300 Expected Activity Product A Product B Total 1,950 1,550 3,500 2,650 1,150 3,800 1,060 1,435 2,495 (Note: The Order Size activity cost pool's costs are allocated on the basis of direct labor hours.) The predetermined overhead rate fie, activity rate) for Activity 2 under the activity-based costing system is closest to

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