THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 25 AND 26:Shirt Company produces two product lines: T-shirt s and Sweatshirts. Product profitability isanalyzed asfollows:T-SHIRTSSWEATSHIRTProduction and sales volume60,000 units35,000 unitsSelling priceP16.00P29.00Direct materialP 2.00P5.00Direct laborP4.50P7.20Manufacturing overheadP2.00P3.00Gross profitP7.50P13.80Selling and administrativeP4.00P7.00Operating profitP3.50P6.80Shirt Company’s manager have decide to revise their current assignment of overhead costs to reflect thefollowing ABC cost information:ActivityActivity costActivity-cost-driverSupervisionP100,920Direct labor hours (DLH)InspectionP124,000InspectionsActivities demandedT-SHIRTSSWEATSHIRTS0.75 DLH/unit1.2 DLH/unit45,000 DLHs42,000 DLHs60,000 inspections17,500 inspections25. Under the revised ABC system, total overhead costs allocated to Sweatshirts will be:a.P 48,720b. P76,720c. P224,920d.None of these answers are correct26. Using an ABC system, next year’s estimates show manufacturing overhead costs will total P228,300 for52,000 T-shirt. If all other T-shirt costs and sales prices remain the same, the profitability that can beexpected isa.P5.41 per t-shirtb.P4.39 per t-shirtc.P1.11 per t-shirtd.(P0.81) per t-shirt27. If breakeven point is 100 units, each unit sells for P30, and fixed costs are P1,000, then on a graph the:a.Total revenue line and the total cost line will intersect at P3,000 of revenueb.Total cost line will be zero units soldc.Revenue line will start at P1,000d.All of these answers are correct28. Put the following ABC implementation steps in order:A.Compute the allocation rates.B.Compute the total cost of the product.C.Identify the products that are the cost object.D.Select the cost allocation basesa. DACBb. DBCAc. BADCd. CDAB