QUESTION 6 Volokh sells caricatures of famous people, reproduced on high-quality paper using a sophisticated lithograph printer. A single caricature can be reproduced up to 1,000 times without losing quality and market value, though demand is usually much lower. Volokh spends considerable time studying a particular celebrity to determine exactly how to capture their most notable characteristics (e.g., Barack Obama's ears), which allows him to make a series of caricatures that capture the subject in different events and settings (e.g., the inauguration, giving a speech, playing basketball). Among other items, Volokh sells 5,000 reproductions of Albert Einstein and 5.000 reproductions of Justin Bieber. However, the Einstein reproductions are all of a single caricature (Einstein riding a bicycle), while the Bieber reproductions include many different caricatures (laughing, dancing, looking soulful). For this question, order the costs below to create the most appropriate cost hierarchy, where #1 is the highest cost hierarchy and #3 is the lowest cost hierarchy. - Cost of drawing a caricature - - Cost of studying a celebrity Cost of reproducing a caricature QUESTION 4 Paul's Pipes manufactures custom pipe fittings. Total manufacturing overhead costs were $10,000,000. In the past Paul allocated costs using a simple absorption costing system using machine-hours as the driver. However, Paul is now considering switching to an activity-based costing system. He has determined that the total manufacturing overhead cost is a mixture of machine-level, unit-level, product-level, and batch-level costs. Paul has prepared the following information regarding manufacturing costs and driver usage. Total Manufacturing Expected Driver Usage Overhead Costs Machine-level costs $4,000,000 40,000 hours Unit-level costs 2,000,000 8,000,000 units Batch-level costs 3,000,000 1,500 batches Product-line costs 1,000,000 40 lines 10,000,000 The Household Plumbing division used 14,000 machine hours, produced 1,000,000 units, ran 42 batches, and encompasses 6 product lines. What was the reported overhead cost applied to the Household Plumbing division under the old system