XYZ Company currently has the capacity to manufacture 250,000 widgets a year and 100,000 gadgets a year in its factory XYZ Company has the following costs related to manufacturing and selling 200,000 widgets (1) Direct materials and direct labor $840,000 $180,000 (2) Variable manufacturing overhead (3) Depreciation on equipment only used for the widgets $40,000 (4) Allocated share of depreciation on factory $100,000 $70,000 $60,000 (5) Annual salary of widget production manager (6) Variable selling costs (commissions) (7) Allocated share of fixed selling costs Total $80,000 $1,370,000 Assume that at the end of the year. XYZ still has 5,000 units on the shelf XYZ has redesigned the widget for next year's production, making the old units nearly obsolete. As a result, they are trying to liquidate the old widgets. Which costs are relevant in determining the lowest amount that XYZ should accept as the selling price for the 5,000 widgets? (1) (2) (3), (4), (5),(6) (1). (2). (6) (1). (6) (6) All of the costs above are relevant in this situation Sound Company produces several lines of headphones. The factory is highly automated and uses an activity-based costing system to allocate overhead costs to its various products. During the upcoming period, the company expects to produce 72,000 units. The costs and cost drivers associated with four activity cost pools are given below UNIT BATCH PRODUCT FACILITY ACTIVITIES LEVEL LEVEL LEVEL LEVEL Cost $30,000 $8,000 $15,000 $36,000 110.000 Cost driver 250 sets of use 72.000 labor hrs ups units Production of 18,000 units of its popular in-ear headphones required 2,200 labor hours and 80 setups and consumed one-fourth of the product sustaining activities. What amount of unit-level costs will be allocated to the product? 57.500 $3,750 $2,560 $6,600 $9.000