Please answer all three questions.

QUESTION 13 Jack is currently employed earning 40,000 per annum. He is considering going into business offering satellite broadband connections for local business and domestic use. He will operate from a unit available for rent on the outskirts of town. Using a relevant costing approach how should Jack treat (i) his current salary and (ii) the rent of the unit when deciding whether or not to start the business? a. (i) as an opportunity cost, (ii) as an incremental cost b. (i) as an opportunity cost, (ii) as a sunk cost C. (i) as an irrelevant cost, (ii) as an opportunity cost d.(i) as a sunk cost, (ii) as a committed cost QUESTION 14 Tailor Ltd are limited to 12,000 machine hours during the year. They use the machinery to produce dresses and jumpers, and have provided the following information: Jumpers Dresses Selling Price per unit 18 25 Variable Cost per unit 4 12 Machine hours per unit 1 2 Estimated sales demand (units) 8,000 5,000 How many machine hours will be allocated to the production of the jumpers? a. 4,000 b. 8,000 c. 2,000 d.o QUESTION 15 World Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have already been allocated to the company's three activity cost pools as follows: Processing, 45,000; Supervising, 20,000; and Other, 17,400. Processing costs are assigned to products using machine hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the other activity cost pool are not assigned to products. Activity cost data is shown below: MHS (Processing) 10,000 Number of Batches (Supervising) Product 06 800 Product D7 5,000 200 Total 15,000 1,000 What amount of overhead cost is assigned to Product 06 under activity-based costing? a. 30,000 b. 46,000 c. 16,000 d. 65,000