Item I through 10 are based on the following information.Wonders Inc. manufactures radios in two different styles:Radio Model Annual Sales in UnitsStarry 10,000Polka 16,000Wonders uses a traditional volume-based costing system in applyingfactory overhead using direct labor pesos. The unit prime costs ofeach product were as follows:Starry PolkaDirect Materials P38 P25.40Direct Labor1.2xP14.60= 17.520.9xP14.60= 13.14The predetermined overhead rate was 350% (P1,349,040 / 385,440).Direct Labor budget per annual sales:Starry radio 10,000xP17.52 P175,20018Polka radio 16,000xP13.14 210,240Total P385,440Factory overhead:Engineering and Design P404,712Quality Control 269,808Machinery 519,616Miscellaneous Overhead 134,904Total P1,349,040Wonder`s controller had been researching activity-based costing anddecided to switch to it. A special study determined Wonder`s two radiomodels were responsible for the following proportions of each costdriver.Starry PolkaEngineering and Design 40% 60%Quality Control 45% 55%Machinery 60% 40%\Miscellaneous Overhead 35% 65%1.) Using traditional costing, applied factory overheadper unit for the starry model is calculated to be:a P61.32. c. P43.42.b P65.35. d. P45.99.2.) Using traditional costing, applied factory overheadper unit for the Polka model is calculated to be:a P61.32. c. P43.42.b P65.43. d. P45.99.193.) Using activity-based costing, applied factory overheadper unit for the Starry model, based on Engineering andDesign, is calculated to be:a P32.38. c. P16.19.b P12.14. d. P4.72.4.) Using activity-based costing, applied factory overheadper unit for the Starry model, based on Quality Control,is calculated to be:a P32.38. c.P16.19.b 12.14. d. 4.72.5.) Using activity-based costing, applied factory overheadper unit for the Starry model, based on Machinery, iscalculate to be:a P32.38 c. P16.19.b P12.14 d. P4.726.) Using activity-based costing, applied factory overheadper unit for the Starry model, based on MiscellaneousOverhead, is calculated to be:a P32.38. c. P16.19.b P12.14. d. P4.72.7.) Using activity-based costing, applied factory overheadper unit for the polka model, based on Engineering andDesign, is calculated to be:a P15.18. c. P5.48.b P9.27. d. P13.49.8.) Using activity-based costing, applied factory overheadper unit for the Polka model, based on Quality Control,is calculated to be:a P15.18. c. P5.48.b P9.27. d. P13.499.) Using activity-based costing, applied factory overheadper unit for the Polka model, based on Machinery iscalculated to be:a P15.18. c. P5.48.b P9.27 d. P13.49.2010.) Using activity-based costing, applied factory overheadper unit for the Starry model, based on MiscellaneousOverhead, is calculated to be:a. P15.18b. P9.27c. P5.48d. P13.49e.

1.) Using traditional costing, applied factory overhead per unit for the Starry model is calculated to be: a P61.32. c. P43.42. b P65.35. d. P45.99.

To calculate the applied factory overhead per unit for the Starry model using traditional costing, we need to multiply the predetermined overhead rate by the unit prime cost. The predetermined overhead rate is 350%, which is equivalent to 3.5.

For the Starry model, the unit prime cost is P17.52. Therefore, the applied factory overhead per unit for the Starry model is calculated as follows: P17.52 x 3.5 = P61.32.

So, the correct answer is a) P61.32.

2.) Using traditional costing, applied factory overhead per unit for the Polka model is calculated to be: a P61.32. c. P43.42. b P65.43. d. P45.99.

To calculate the applied factory overhead per unit for the Polka model using traditional costing, we again multiply the predetermined overhead rate by the unit prime cost. The predetermined overhead rate is still 3.5.

For the Polka model, the unit prime cost is P13.14. Therefore, the applied factory overhead per unit for the Polka model is calculated as follows: P13.14 x 3.5 = P45.99.

So, the correct answer is d) P45.99.

3.) Using activity-based costing, applied factory overhead per unit for the Starry model, based on Engineering and Design, is calculated to be: a P32.38. c. P16.19. b P12.14. d. P4.72.

To calculate the applied factory overhead per unit for the Starry model based on Engineering and Design using activity-based costing, we multiply the proportion of Engineering and Design cost driver (40%) by the total factory overhead (P404,712).

P404,712 x 0.4 = P161,884.8

Next, we divide this amount by the annual sales of the Starry model (10,000 units) to get the applied factory overhead per unit: P161,884.8 / 10,000 = P16.19.

So, the correct answer is c) P16.19.

4.) Using activity-based costing, applied factory overhead per unit for the Starry model, based on Quality Control, is calculated to be: a P32.38. c.P16.19. b 12.14. d. 4.72.

To calculate the applied factory overhead per unit for the Starry model based on Quality Control using activity-based costing, we multiply the proportion of Quality Control cost driver (45%) by the total factory overhead (P269,808).

P269,808 x 0.45 = P121,413.6

Next, we divide this amount by the annual sales of the Starry model (10,000 units) to get the applied factory overhead per unit: P121,413.6 / 10,000 = P12.14.

So, the correct answer is b) P12.14.

5.) Using activity-based costing, applied factory overhead per unit for the Starry model, based on Machinery, is calculated to be: a P32.38 c. P16.19. b P12.14 d. P4.72.

To calculate the applied factory overhead per unit for the Starry model based on Machinery using activity-based costing, we multiply the proportion of Machinery cost driver (60%) by the total factory overhead (P519,616).

P519,616 x 0.6 = P311,769.6

Next, we divide this amount by the annual sales of the Starry model (10,000 units) to get the applied factory overhead per unit: P311,769.6 / 10,000 = P31.18.

So, the correct answer is not provided in the options.

6.) Using activity-based costing, applied factory overhead per unit for the Starry model, based on Miscellaneous Overhead, is calculated to be: a P32.38. c. P16.19. b P12.14. d. P4.72.

To calculate the applied factory overhead per unit for the Starry model based on Miscellaneous Overhead using activity-based costing, we multiply the proportion of Miscellaneous Overhead cost driver (35%) by the total factory overhead (P134,904).

P134,904 x 0.35 = P47,116.4

Next, we divide this amount by the annual sales of the Starry model (10,000 units) to get the applied factory overhead per unit: P47,116.4 / 10,000 = P4.72.

So, the correct answer is d) P4.72.

7.) Using activity-based costing, applied factory overhead per unit for the Polka model, based on Engineering and Design, is calculated to be: a P15.18. c. P5.48. b P9.27. d. P13.49.

To calculate the applied factory overhead per unit for the Polka model based on Engineering and Design using activity-based costing, we multiply the proportion of Engineering and Design cost driver (60%) by the total factory overhead (P404,712).

P404,712 x 0.6 = P242,827.2

Next, we divide this amount by the annual sales of the Polka model (16,000 units) to get the applied factory overhead per unit: P242,827.2 / 16,000 = P15.18.

So, the correct answer is a) P15.18.

8.) Using activity-based costing, applied factory overhead per unit for the Polka model, based on Quality Control, is calculated to be: a P15.18. c. P5.48. b P9.27. d. P13.49.

To calculate the applied factory overhead per unit for the Polka model based on Quality Control using activity-based costing, we multiply the proportion of Quality Control cost driver (55%) by the total factory overhead (P269,808).

P269,808 x 0.55 = P148,394.4

Next, we divide this amount by the annual sales of the Polka model (16,000 units) to get the applied factory overhead per unit: P148,394.4 / 16,000 = P9.27.

So, the correct answer is b) P9.27.

9.) Using activity-based costing, applied factory overhead per unit for the Polka model, based on Machinery, is calculated to be: a P15.18. c. P5.48. b P9.27 d. P13.49.

To calculate the applied factory overhead per unit for the Polka model based on Machinery using activity-based costing, we multiply the proportion of Machinery cost driver (40%) by the total factory overhead (P519,616).

P519,616 x 0.4 = P207,846.4

Next, we divide this amount by the annual sales of the Polka model (16,000 units) to get the applied factory overhead per unit: P207,846.4 / 16,000 = P12.99.

So, the correct answer is not provided in the options.

10.) Using activity-based costing, applied factory overhead per unit for the Starry model, based on Miscellaneous Overhead, is calculated to be: a. P15.18 b. P9.27 c. P5.48 d. P13.49

To calculate the applied factory overhead per unit for the Starry model based on Miscellaneous Overhead using activity-based costing, we multiply the proportion of Miscellaneous Overhead cost driver (65%) by the total factory overhead (P134,904).

P134,904 x 0.65 = P87,689.6

Next, we divide this amount by the annual sales of the Starry model (10,000 units) to get the applied factory overhead per unit: P87,689.6 / 10,000 = P8.77.

So, the correct answer is not provided in the options.