Adelberg Corporation makes two products: Product A and Product B. Annual production and sales are 750 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 0.8 direct labor-hours per unit and Product B requires 0.4 direct labor-hours per unit. The total estimated overhead for next period is $101,480.

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:

Activity Cost Pool	Estimated Overhead Costs	Expected Activity
		Product A	Product B	Total
Activity 1	$ 43,800	1,300	700	2,000
Activity 2	29,240	1,100	600	1,700
General Factory	28,440	600	300	900
Total	$ 101,480

(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:

Multiple Choice

• $46.84

• $45.90

• $39.10

• $20.70