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Overhead cost per unit of product B under traditional costing custom is closet to? Adams Company has two products: A and B. The annual production

Overhead cost per unit of product B under traditional costing custom is closet to? image text in transcribed
Adams Company has two products: A and B. The annual production and sales of Product A is 2,450 units and of Product B is 1,850 units. The company has traditionally used direct labor-hours as the basis for applying all manufacturing overhead to products. Product A requires 0.3 direct labor-hours per unit and Product B requires 0.6 direct labor-hours per unit. The total estimated overhead for next period is $107100. 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 Overhead Costs Expected Activity Total ProductA Product B Total 3.100 3.400 845 Activity 1 1750 .350 950 110 $33,094 General Factory Total 735 $107,100 (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 8 under the traditional costing system is closest to: O $3483 O $15.65 O $1918 O $14.84

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