No. 30 please provide solution 308 Chapter 930. Carnation Company has two products: A and B. The company uses.The estimatedactivity-based costing to determine product costs.overhead costs and expected activity for each of the company's three100/1overhead activity centers are as follows:EstimatedActivityOverheadExpected ActivityProduct AProduct BTotalCenter nebri Costs7003001,000P32,600Activity I600200800P17,600Activity 2400100500P52,500Activity 3The predetermined overhead rate under the activity based costingsystem for Activity 3 is closest to:a.P525.00.C. P105.00.P205.00.b.P 44.65.d.V. ProblemsProblem 1Peejay Autoparts, Inc., previously used a cost system that allocated allfactory overhead costs to products based on 350 percent of direct labor cost.The company has just implemented an ABC system that traces indirect coststo products based on consumption of major activities as indicated below.Compare the total annual costs of Product X using both the traditionalvolume-based and the new ABC systems.Annual Cost DriverActivityQuantityCostProduct X CostDriver ConsumptionLaborP300,000P 30,000Machining20,000 hoursP10,000800 hoursSetupP500,00010,000 hoursP100,000100 hours

Activity based costing is that method of costing under which all type of indirect costs are being…

308 Chapter 9 30. Carnation Company has two products: A and B. The company uses. The estimated activity-based costing to determine product costs. overhead costs and expected activity for each of the company's three overhead activity centers are as follows: Estimated Activity Overhead Expected Activity Product A Total Product B Centerbrit Costs 700 300 1,000 Activity I P32,600 200 600 800 P17,600 Activity 2 P52,500 400 500 Activity 3 100 The predetermined overhead rate under the activity based costing system for Activity 3 is closest to: a. P525.00. C. P105.00. b. P 44.65. 27d. P205.00.