Activity Based Costing and Management IV. Multiple Choice 301 Tiems / through 10 are based on the following information Wonders Inc manufactures radios in two different styles. Annual Sales Radio Model in Units Starry 10,000 Polka 16,000 Wonders uses a traditional volume-based costing system in applying factory overhead using direct labor pesos. The unit prime costs of cach product were as follows: Starry Polka Direct materials P38.00 P25.40 Direct labor: 1.2 x P14.60 = 17.52 0.9 x P14.60 = 13.14 The predetermined overhead rate was 350% (P1,349,040 + 385,440). Direct labor budget per annual sales: Starry radio 10,000 x P17.52 P175,200 Polka radio 16,000 x P13.14 210,240 Total P385,440 Factory overhead: Engineering and Design P 404,712 Quality Control 269,808 Machinery 539,616 Miscellaneous Overhead 134,904 Total P1,349,040 Wonders' controller had been researching activity-based costing and decided to switch to it. A special study determined Wonders' two radio models were responsible for the following proportions of each cost driver: Starry Polka 40% 60% Engineering and Design Quality Control 45% Machinery Miscellaneous Overhead 35% 60% 55% 40% 65% 302 Chapter 9 1. Using traditional costing, applied factory overhead per unit for the Starty model is calculated to be: a. P61.32. c. P43.42 b. P65.43. d. P45.99. 2. Using traditional costing, applied factory overhead per unit for the Polka model is calculated to be: P61.32. P43.42. b. P65.43. d. P45.99. c. a. 3. Using activity-based costing, applied factory overhead per unit for the Starry model, based on Engineering and Design, is calculated to be: P32.38. P16.19. b. P12.14. d. P 4.72. c. a. 4. Using activity-based costing, applied factory overhead per unit for the Starry model, based on Quality Control, is calculated to be: P32.38. c. P16.19. b. P12.14. d. P 4.72. a. 5. a. c. Using activity-based costing, applied factory overhead per unit for the Starry model, based on Machinery, is calculated to be: P32.38. P16.19. b. P12.14. d. P 4.72. Using activity-based costing, applied factory overhead per unit for the Starry model, based on Miscellaneous Overhead, is calculated to be: P32.38. c. P16.19. b. P12.14. d. P 4.72. 6. a. 7. Using activity-based costing, applied factory overhead per unit for the Polka model, based on Engineering and Design, is calculated to be: P15.18. c. P 5.48. b. P 9.27. d. P13.49. a. 8. Using activity-based costing, applied factory overhead per unit for the Polka model, based on Quality Control, is calculated to be: P15.18. P 5.48. b. P 9.27. d. P13.49 a. c. 9. Using activity-based costing, applied factory overhead per unit for the Polka model, based on Machinery, is calculated to be: Management a P15.18. b. P 9.27. c. d. P 5.48 P13.49. 10. Using activity-based costing, applied factory overhead per unit for the Starry model, based on Miscellaneous Overhead, is calculated to be P15.18. P 5.48. b. P 9.27. d. P13.49. c. a. ra hased on the following information