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Question 20 25 pts Acklin Company has two products A and B The annual production and sales of Product A 600 units and of Product

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Question 20 25 pts Acklin Company has two products A and B The annual production and sales of Product A 600 units and of Product is 900 units. The company has traditionally used direct labor hours as the basis for applying all manufacturing overhead to products Product Arequires 05 direct bor hours per unit and Product requires 0.3 direct Isbor hours per unit. The total estimated overhead for next period is $63,322 The company is comidering switching to an activity-based costing system for the purpose of computing unit product costs for external reports. The new activity-based costing sitem would have three overhead activity cost pool-Activity 1. Activity 2nd General Factory with estimated overhead costs and expected activitas follows Activity Cost Pool Est Ovhid Cost Expected Acty-Prod A Expected Acty-Prod B Total Activity 1 $18.900 700 200 900 Activity 2 515631 1.000 100 1.100 General Factory 5 28.791 300 270 570 Tot 563.322 The overhead content of Product Aunder the traditional costing stem is dosest to $100 15555 125.26 5711

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