24 . C. a c. C Batch- The power costs associated with running machines is an example of a cost that can be traced to a: Unit-level activity center. Product-level activity center. d. b. Batch-level activity center Facility-level activity center 25. Labor setup cost is an example of a cost that can be traced to a: Unit-level activity center. Product-level activity center. b. Batch-level activity center. d. Facility-level activity center. 26. The plant manager's salary is an example of a cost that would be traced to a: Unit-level activity center. Product-level activity center. d b. Batch-level activity center. Facility-level activity center. 27. Lilium Company uses activity-based costing to determine unit product costs for external reports. The company has two products: A and B. The annual production and sales of Product A is 10,000 units and of Product B is 4,000 units. There are three overhead activity centers, with estimated overhead costs and expected activity as follows: Estimated Activity Overhead Expected Activity Center Costs Total Product A Product B Activity 1 P25,000 250 150 100 Activity 2 P65,000 1,000 800 200 Activity 3 P90,000 3,000 1,000 2,000 The overhead cost per unit of Product A under activity-based costing is closest to: P6.00 P1.50. b. P9.70. d. P3.00. c. a. 28. Tiger Lily Company uses activity-based costing to determine unit product costs for external reports. The company has two products: A and B. The annual production and sales of Product A is 4,000 units and of Product B is 1,000 units. There are three overhead activity centers, with estimated overhead costs and expected activity as follows: Activity-Based Costing and Management 307 Expected Activity Product 700 500 800 Product B 300 100 400 Estimated Activity Overhead Center Costs Total Activity 1 P18,000 1,000 Activity 2 P24,000 600 Activity 3 P60,000 1,200 The overhead cost per unit of Product A under activity-based costing is closest to: P20.40. c. P18.15. b. P10.00. d. P17.00. a. 29. Santan Company has two products: A and B. The company uses activity-based costing to determine product costs. The estimated overhead costs and expected activity for each of the company's three overhead activity centers are as follows: Total Activity Center Activity 1 Activity 2 Activity 3 Estimated Overhead Costs P18,000 P16,000 P27,000 500 Expected Activity Product A 300 500 600 Product B 200 100 300 600 900 The predetermined overhead rate under the activity based costing system for Activity 3 is closest to: P30.00 c. P90.00 b. P30.50. d. P67.78. a. 308 Chapter 9 Problem 2 Zash Manufacturin and expected overh 30. Carnation Company has two products: A and B. The company uses activity-based costing to determine product costs. The estimated overhead costs and expeeted activity for each of the company's three overhead activity centers are as follows: M M S: = Activity Center Activity ! Activity 2 Activity 3 Estimated Overhead Costs P32,600 P17,600 P52,500 Total 1,000 800 500 Expected Activity Product A Product B 700 300 600 200 400 100 Currently, overhe budgeted direct la for next year. The predetermined overhead rate under the activity based costing system for Activity 3 is closest to: P525.00 c. P105.00. b. P 44.65. d. P205.00 The company ha manager feels th years. Bids are a. Estimates for th V. Problems Problem 1 Peejay Autoparts, Inc., previously used a cost system that allocated all labor cost