QUESTION 30 (09) True Company makes two products, J (1,000 units) and K (2,000 units). It currently uses traditional costing. The following information is given for Product Direct material cost per unit of product is $200. * Direct labor cost per hour is $50 * 3 direct labor hours are needed to make one unit of product. * Overhead is applied on the basis of direct labor hours. Its predetermined overhead rate is $15 per direct labor hour. The company is considering switching to activity-based costing. The following data are given for activities: Activity cost pool Activity Activity rate Total For Product Testing For Product) Mo Batches $1,500 per Batch 50 Batches 10 Batches Processing 540 per Machine Hour 1.000 MHS500 MHS 1,500 MHS Chik mandi Question Completion Status: Activity cost pool Activity Activity rate Total For Product ) For Product K Testing $1,500 per Batch Mo Batches 10 Batches 150 Batches Processing 15:40 per Machine Hour 12.000 MHS 500 MHS KMH) 1,500 MHS Under activity based costing the amount of overhead cost allocated to all 1,000 units of Products: O A $80,000 O B. $155,000 OC. $125,000 OD. $200,000