How to answer the required questions in Problem 1 and Problem 2???....

PROBLEM 1 Levels of Activity Drivers Required: Each of the following is a potential activity driver. Identify the most likely level of each activity driver by writing U for a unit-level driver, B for a batch-level driver, and P for a product-level driver. 01. Number of setups 02. Number of work orders 03. Machine hours 04. Pounds of product 05. Number of part numbers 06. Design hours 07. Number of design changes 08. Marketing promotions 09. Direct material dollars 10. Loads of materials moved PROBLEM 2 Distortion of Batch-Level Costs A company's existing cost system accumulates all overhead in a single cost pool and allocates it based on direct labor hours. Last year, overhead costs totaled $1,500,000, and Product A used 3,000 of the 30,000 total direct labor hours. An ABC study revealed that of the total overhead cost for last year, $100,000 represented batch-level costs; these batch-level costs are driven by work orders; and a total of 500 work orders were issued, of which 25 were for Product A. Required: With respect to batch-level costs only, calculate the existing cost system's direction and amount of cost distortion for Product A