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An entity has two products: A and B. The annual production and sales of product A is 800 units and of product B is 500

image text in transcribed An entity has two products: A and B. The annual production and sales of product A is 800 units and of product B is 500 units. The company has traditionally used direct labor-hours as the basis for applying alal manufacturing overhead to products. Product A requires 0.3 direct labor hours per unit and Product B required 0.3 direct labor hours per unit. The total estimated overhead for the next period os P92,023. The company is considering switching to an activity-based costing system for the purpose of computing 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 costs and expected activities as follows: The overhead cost per unit of Product B under traditional costing system is: (Round to the nearest centavo)

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