Case 3: ABRAMS COMPANY Abrams Company manufactures miniature speakers that are built into the headrests of high- end lounge chairs. Based on experience, Abrams has found that its total annual overhead costs can be represented by the following formula: Overhead cost $350,000+ $2.20X, where x = number of speakers. Last year, Abrams produced 70,000 speakers. Actual overhead costs for the year were as expected. Required: 1. What is the driver for the overhead activity? 2. What is the total overhead cost incurred by Abrams last year? 3. What is the total fixed overhead cost incurred by Abrams last year? 4. What is the total variable overhead cost incurred by Abrams last year? 5. What is the overhead cost per unit produced? 6. What is the fixed overhead cost per unit? 7. What is the variable overhead cost per unit? 8. Recalculate Requirements 5, 6, and 7 for the following levels of production: (a) 50,000 units and (b) 100,000 units. Explain this outcome. Case 4: COST ANALYSIS Units Sold @ P60/each. Cost data is shown in the following table at different level of activity. UNITS Salary 1,000 P20,000 2,000 P30,000 3,000 P40,000 Cost of Goods Sold 15,000 30,000 45,000 Cost/Unit of Depreciation Rent 300 150 100 20,000 20,000 20,000 Required: Answer the following the questions with a brief explanation for every item. 1. Which of the above costs behaves as a Variable Cost? 2. Which of the above costs behaves as a Mixed Cost? 3. Which one does not contain any fixed cost behavior? 4. If 3,000 units are sold what is the contribution margin? (note: Contribution Margin (CM)= Sales - Variable Costs) 5. What is total fixed cost?