9. Cabiner World uses activity-based costing to compute product costs for external reports. The company has three activity cost pools and applies overhead using predetermined overhead rates for each activity cost pool. Estimated costs totaled $40,000 and expected activity equals 2,500 for this activity cost pool Actual activity for the current year was 2,490. The amount of o applied for this activity during the year was closest to: a. $36,300. b. $96,190 c. $40,000. d. $39,840. 10. High Fidelity Audio Inc. reported sales of $8,000,000 for the month and incurred variable expenses totaling $5,600,000 and fixed expenses totaling $1,440,000. The company has no beginning or ending inventories. A total of 80,000 units were produced and sold last month. If sales increase by 200 units, how much should net income increase? a. $1,600 b. $6,000 c. $10,000 d. $19,200 Page 2