When using Activity-Based-Costing (ABC), a predetermined overhead rate is O based on activities and not a unit-based output rate. O identical to the traditional costing system. o not used at all. all of the above. The three major parts of a production cost report include: O All of the above O Quantities Costs Cost Reconciliation An increase in the level of activity will have the following effects on UNIT costs for both variable and fixed costs: O UNIT VARIABLE COSTS-remains constant; UNIT FIXED COSTS-decrease O UNIT VARIABLE COSTS-remains constant; UNIT FIXED COSTS-remains constant O UNIT VARIABLE COSTS-increase; UNIT FIXED COST-decreases O UNIT VARIABLE COSTS-decrease ; UNIT FIXED COSTS-remains constant Why is it important to break down mixed costs into their fixed portion and their variable portion? To determine which costs are controllable and which ones are uncontrollable for decision making purposes. Breakeven analysis is used to break down mixed costs into their variable and fixed components. Most fixed costs are controllable and most variable costs are not. O It is not important to break down mixed costs because they become separated into variable and fixed costs automatically over time. At the high level of activity in November, 7,000 machine hours were run and power costs were $12,000. In April, a month of low activity, 2,000 machine hours were run and power costs amounted to $6,000. Using the high-low method, the estimated fixed cost of power costs is $12,000 O $3,600 O $6,000 O $8,400