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Answer Question 1-3 using the following data. A company has the following overhead costs and activities: Estimated Overhead Expected Activity Activities and Activity Measures Cost Product V Product W Product X Machine setups (setups) $7,234.50 69 12 10 Processing customer orders (orders) $3,565.50 20 9 21 Assembling products (assembly-hours) $9,178.00 492 697 111 1. If the company allocates overhead to products using assembly hours as the single allocation base, how much overhead will be allocated to product X? A. $1,706 B. $784 C. $618 D. $304 2. How much overhead cost would be assigned to Product V using the activity-based costing system? A. $158 B. $91,722 C. $10,385 D. $5,485 3. After changing from the traditional costing system that uses assembly hours as the single allocation base to activity-based costing, overhead costs assigned to Product W would be: A. increased by $5,803. B. increased by $4,194. C. decreased by $5,803. D. decreased by $4,194.4. A company sells two products, one with sales of $10,000 and variable expenses of $2,500, another with sales of $46,000 and variable expenses of $15,420. Fixed expenses are $33,100. Breakeven point for the whole company is close to: A. $33,100 B. $22,900 C. $51,020 D. $48,676 5. A company that reduces the proportion of variable costs in its cost structure will: A. enjoys higher stability in profits. B. increase its profits more when the economy is good. C. have a loss more easily when the economy is bad. D. be indifferent. 6. is normally recorded on any financial statement but irrelevant in decision making which is not. A. Sunk cost B. Incremental cost C. Differential cost D. Opportunity cost