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c. 29 26. A. C. 306 Chapter 9 23. Production order processing is an example of a: a Unit-level activity Product-level activity b. Batch-level activity

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c. 29 26. A. C. 306 Chapter 9 23. Production order processing is an example of a: a Unit-level activity Product-level activity b. Batch-level activity d. Facility-level activity. 24. The power costs associated with running machines is an example of a cost that can be traced to a: a. Unit-level activity center, c. Product-level activity center, b. Batch-level activity center. d. 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. 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. b. Batch-level activity center. d. 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 Product B Activity 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: a. P6.00 C. P1.50. b. P9.70. d. P3.00 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 Estimated Activity Overhead Expected Activity Center Costs Total Product Product B Activity 1 P18,000 1,000 700 300 Activity 2 P24,000 600 500 100 Activity 3 P60,000 1,200 800 400 The overhead cost per unit of Product A under activity-based costing is closest to: a. P20.40. c. P18.15. b. P10.00 d. P17.00. 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: Activity Center Activity 1 Activity 2 Activity 3 Estimated Overhead Costs P18,000 P16,000 P27,000 Total 500 600 900 Expected Activity Product A 300 500 600 Product B 200 100 300 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

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