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Adelberg Corporation makes two products: Product A and Product B. Annual production and sales are 1,000 units of Product A and 750 units of Product

Adelberg Corporation makes two products: Product A and Product B. Annual production and sales are 1,000 units of Product A and 750 units of Product B. The company has traditionally used direct labor-hours as the basis for applying all manufacturing overhead to products. Product A requires 0.5 direct labor-hours per unit and Product B requires 0.4 direct labor-hours per unit. The total estimated overhead for next period is $89,140. 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: Expected Activity Activity Cost Pool Estimated Overhead Costs Product A Product B Total Activity 1 $ 34,580 900 500 1,400 Activity 2 24,400 1,300 700 2,000 General Factory 30,160 500 300 800 Total $ 89,140 (Note: The General Factory activity cost pool's costs are allocated on the basis of direct labor-hours.) The overhead cost per unit of Product B under the

activity-based costing system is closest to

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