Adelberg Company has two products: A and B. The annual production and sales of Product A is 500 units and of Product Bis 1,000 units. The company has traditionally used direct labor-hours as the basis for applying all manufacturing overhead to products. Product A requires 0.4 direct labor-hours per unit and Product B requires 0.2 direct labor-hours per unit. The total estimated overhead for next period is $68,756 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 Estimated Expected Activity Overhead Activity Cost Pools Costs Product A Product B Total Activity 1 $31,031 1,000 300 1,300 Activity 2 22,249 1,600 300 1,900 Order Size 15,476 200 Total $68,756 200 400 (Note: The Order Size activity cost pool's costs are allocated on the basis of direct lobor-hours.) The overhead cost per unit of Product Bunder the traditional costing system is closest to (Round your intermediate calculations to 2 decimal places.) Multiple Choice $2.34 5774 $4.27 $34 38 Adelberg Company has two products: A and B. The annual production and sales of Product A is 500 units and of Product B is 1.000 units. The company has traditionally used direct labor-hours as the basis for applying all manufacturing overhead to products. Product A requires 0.4 direct labor hours per unit and Product B requires 0.2 direct labor-hours per unit. The total estimated overhead for next period is $68,756 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: Estimated Expected Activity Overhead Activity Cost Pools Costs Product A Product B Total Activity 1 $31,031 1,000 300 1,300 Activity 2 22,249 1,600 1,900 Order Size 15,476 200 200 Total $68,756 300 400 (Note: The Order Size activity cost pool's costs are allocated on the basis of direct labor-hours.) The predetermined overhead rate .e., activity rate) for Activity 2 under the activity-based costing system is closest to: Multiple Choice $13.91 $11.71 $7416 $26.19