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answer with proper explanation Adelberg Company has two products: A and B. The annual production and sales of Product A is 1,950 units and of

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answer with proper explanation

Adelberg Company has two products: A and B. The annual production and sales of Product A is 1,950 units and of Product B is 1,350 units. The company has traditionally used direct labor-hours as the bosis for applying all manulacturing overhead to products. Product A requires 0.5 direct labofhours per unit and Product E requires 0.8 direct labor-hours per unit. The total estimated overhead for next period is 5 tot, 600 . 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: (Note: The Order Size actlvity cost pools costs are ailocated on the basis of direct labor-hours.) Mutiple Choice 5917 5745 $59.98 54233

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