1) Alpine Boots Company incurred $325,000 in direct labor cost and $225,000 in direct material cost for its mens boots. In addition, it incurred $275,000 in total advertising for men and womens boots, of which 40% was spent on mens boots. Under activity-based costing Alpine may report which amount as product cost for mens boots?

A : $825,000

B : $550,000

C : $715,000

D : $660,000

2) inspection is a non-value-addedvalue-added activity.

a) valued-added

B) non-value-added