AThe predetermined overhead rate under the traditional costing system is closest to which of the following?BThe overhead cost per unit of Product B under the traditional costing system is closest to which of the following?CThe predetermined overhead rate (I.e.,activitv rate) for Actvity 2 uader the actuatv-based costing system is closest to which of the following?DThe overhead cost per unit of Product B under the activity based costing system is closest to which of the following?

3. Use the following to answer questions A-D: Addy Company has two products: A and B. The annual production and sales of Product A is 1,700 units and of Product B is 1,100 units. The company has traditionally used direct labour hours as the basis for applying all manufacturing overhead to products. Product A requires 0.3 direct labour hours per unit, and Product B requires 0.6 direct labour hours per unit. The total estimated overhead for next period is $98, 785. 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: Estimated Activity Overhead Expected Activity Cost Pool Costs Product A Product B Total Activity 1 $30.528 1,000 600 1.600 Activity 2 $17.385 1,700 200 1.900 General Factory $50,872 510 660 1.170 Total $98 785