Problem regarding traditional costing system

Question

Problem:

Acton Company has two products: A and B. The annual production and sales of Product A is 800 units and of Product B is 500 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 0.2 direct labor hours per unit. The total estimated overhead for next period is $92,023. 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:

Activity Cost Estimated Overhead Expected Activity
Pool Cost
ProductA ProductB Total
Activity 1    $14,487 500 600 1,100
Activity 2    $64,800 2,500 500 3,000
General Factory    $12,736 240 100 340
Total    $92,023

Q1. The predetermined overhead rate under the traditional costing system is closest to: Choose the correct answer

• $37.46
• $21.60
• $13.17
• $270.66

Q2. The overhead cost per unit of Product B under the traditional costing system is closest to: choose the correct answer

• $54.13
• $7.49
• $4.32
• $2.63

Q3. The predetermined overhead rate (i.e., activity rate) for Activity 1 under the activity-based costing system is closest to: Choose the correct answer

• $28.97
• $13.17
• $83.66
• $24.15