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Help Save & Exit SL Adelberg Company has two products A and B The annual production and sales of Product A is 2400 units and

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Help Save & Exit SL Adelberg Company has two products A and B The annual production and sales of Product A is 2400 units and of Product Bis 1800 units The company has traditionally used direct labor hours as the basis for applying all manufacturing overhead to products Product Arequires 05 direct labor hours per unit and Product requires 08 direct labor hours per unit. The total estimated overhead for next period is $106,575 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 Sure with estimated overhead costs and expected activity as follows: Expected Activity Product B 1,300 Total 3,000 Estimated Overhead Costs $ 32,932 18,757 54.36 $ 106,575 Activity Cost Pools Activity 1 Activity 2 Order Size Product 1,700 2.400 1,200 1,400 Total Note The Order Size activity cost pool's costs are allocated on the basis of conector hours) activity rate for Activity 2 under the activity-based costing systems cosest to The predetermined overhead rate Motole Choice

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