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Use the following information for the next 2 questions. 22. Yummy Treats, Inc. makes two products, popcorn and (edible) cookie dough. The company has historically applied overhead on the basis of machine hours (MH), but is considering adopting an activity-based costing system. The company produces 40,000 cups of popcorn and 10,000 cups of cookie dough. Popcorn takes 0.4 MH/cup to make and cookie dough takes 0.5 MH/cup. Estimated Expected Acvitity Activity Cost Pool Overhead Cost Popcorn Cookie Dough Total Machine setups $25,000 125 setups 500 setups 625 setups Purchase orders (POs) issued $6,000 350 POs issued 250 POs issued 600 POs issued Inspections $22,400 80 inspections 200 inspections 280 inspections $53,400 What is the overhead cost per cup of cookie dough if Yummy Treats, Inc. adopts the activity-based costing system? a. $3.85 b. $0.96 C. $5.34 d. $2.54 23. In changing from a traditional costing system to an activity-based costing system, Yummy Treats Inc.'s overhead costs will shift from to because a. Popcorn; cookie dough; a cup of popcorn requires more activities that consume resources. b. Popcorn; cookie dough; a cup of cookie dough requires more activities that consume resources. c. Cookie dough; popcorn; a cup of cookie dough requires more activities that consume resources. d. Cookie dough; popcorn; a cup of popcorn requires more activities that consume resources