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Please answer all. Thank you so much in advance:)! 20 0.40 points Addy Company has two products: A and B. The annual production and sales
Please answer all. Thank you so much in advance:)!
20 0.40 points 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 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 $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 Overhead Expected Activity Activities Costs Product AProduct B Total Activity 1. S30.528 ,000 Activity 2... General Factory Total 17,385 .700 50.872510 98,785 600 200 660 1,600 1,900 1.170 (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 B under the activity-based costing system is closest to: $5066 O $26.09 o $35.28 O $38.16Step by Step Solution
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