Use the following information to complete questions 25 through 28:

AB Company manufactures and distributes two products, Alpha and Beta. Overhead costs are currently allocated using the number of units produced as the allocation base. The controller has recommended changing to an activity-based costing (ABC) system. She has collected the following information:

Activity	Cost Driver	Estimated Overhead Amount	Estimated No. of Cost Driver Activities	Rate
Purchasing Materials	Pounds	$96000	80	$1200 per lb
Production Setups	No. of setups	$164000	20	$8200 per setup
Packaging	No. of units	$260000	130,000	$2 per unit
		$520000

At the end of the period, the AB Company collected the following information about the actual number of activity events for each ofthe two products:

Alpha Beta

Purchased materials 56 24

Production setups 8 12

Packaging 80,000 50,000

Units produced 80,000 50,000

25. What is the total overhead allocated to Alpha using the current system?

A. $200,000

B. $260,000

C. $292,800

D. $320,000

26. What is the total overhead allocated to Beta using the current system?

A. $200,000

B. $260,000

C. $292,800

D. $320,000

27. What is the total overhead per unit allocated to Beta using activity-based costing?

A. $4.54

B. $5.20

C. $4.00

D. $3.66

28. What is the total overhead per unit allocated to Alpha using activity-based costing?

A. $4.54

B. $5.20

C. $4.00

D. $3.66