Adelberg Company has two products: A and B. The annual production and sales of Product Ais 2300 units and of Product Bis 1700 units. The company has traditionally used direct labor hours as the basis...

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Extracted text: Adelberg Company has two products: A and B. The annual production and sales of Product Ais 2300 units and of Product Bis 1700 units. The company has traditionally used direct labor hours as the basis for applying all manufacturing overhead to products. Product A requires 03 direct laborhours per unit and Product B requires 06 direct labor-hours per unit. The total estimated overhead for next period is S105,475 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 Order Size-with estimated overhead costs and expected activity as follows Estimated Expected Activity Overhead Activity Cost Pools Activity 1 Activity 2 Costs Product A Product B Total 32,592 18,564 54,319 1,600 2,300 1,200 2,800 3,100 1,710 80e Order Size 690 1,020 Total $ 105,475 (Note: The Order Sze activity cost pool's costs are allocated on the bass of direct labor-hours) The predetermined overhead rate (Le, activity rate) for Activity 2 under the activity-based costing systemis closest to Multiple Choice O se07 O 55 99 O $4260