Select the best answer and hilite your selection for the following multiple choice questions. Show supporting calculations if question is Not multiple choice. Each multiple choice question is worth 2 marks.

Use the following information to answer parts 1 to 3: Escau Company is a wholesale distributor that uses activity-based costing for all of its overhead costs. The company has provided the following data concerning its annual overhead costs and its activity-based costing system: Overhead Costs: Wages and Salaries $380,000 Other Expenses $100,000 Total $480,000

Distribution of Resource Consumption: Activity Cost Pools Filling Customer Orders Support Other Total Wages and Salaries 30% 60% 10% 100% Other Expenses 35% 45% 20% 100%

The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs. The activity measures for the activity cost pools for the year are as follows:

Activity Cost Pool Activity Filling Orders 3,000 orders Customer Support 20 customers

1. What would be the overall activity rate for the Filling Orders activity cost pool rounded to the nearest cent? A) $48.00. B) $49.67. C) $52.00. D) $56.00. 2. What would be the overall activity rate for the Customer Support activity cost pool rounded to the nearest whole dollar? A) $10,800. B) $12,600. C) $13,650. D) $14,400. 3. To the nearest whole dollar, how much of the wages and salaries cost would be allocated to a customer who placed eight orders in a year? (3 marks)

Use the following information to answer parts 4 to 7:

Addy Company has two products: A and B. The annual production and sales of Product A is 1,700 units and of Product B is 1,100 units. The company has traditionally used direct labour hours as the basis for applying all manufacturing overhead to products. Product A requires 0.3 direct labour hours per unit, and Product B requires 0.6 direct labour hours per unit. The labour rate per hour is $20. The Direct material cost per unit of Product A is $45 and for Product B is $78. The total estimated overhead for next period is $98,785.

The company is considering switching to an activity-based costing system for the purpose of computing unit product costs for external reports. The new activity-based costing system would have three factory overhead activity cost poolsActivity 1, Activity 2, and General Factorywith estimated overhead costs and expected activity as follows:

Estimated Activity Overhead Expected Activity Cost Pool Costs Product A Product B Total Activity 1 $30,528 1,000 600 1,600 Activity 2 $17,385 1,700 200 1,900 General Factory $50,872 510 660 1,170 Total $98,785

(Note: The General Factory activity cost pool's costs are allocated on the basis of direct labour hours.)

4. The predetermined overhead rate under the traditional costing system is closest to which of the following? A) $84.43. B) $19.08. C) $43.48. D) $ 9.15. 5. The overhead cost per unit of Product B under the traditional costing system is closest to which of the following? A) $ 5.49. B) $11.45. C) $50.66. D) $26.09. 6. The predetermined overhead rate (i.e., activity rate) for Activity 2 under the activity-based costing system is closest to which of the following? A) $ 86.93. B) $ 9.15. C) $10.23. D) $51.99. 7. The overhead cost per unit of Product B under the activity-based costing system is________________. (3 marks)

8. The total cost per unit of Product B under the activity-based costing system is_________________. (3 marks)