1. Overhead applied to a product is calculated with the following equation

a. predetermined overhead rate x estimated overhead costs

b. predetermined overhead rate x actual units of cost driver

c. predetermined overhead rate x actual overhead cost

2. Which costs will be included in the calculation of the cost per equivalent unit using the FIFO method of processs costing

a. current period costs only

b. current period costs less those in beginning work in process inventory

c. current period costs less thos in ending work in process inventory

3. DesignX produces vatious types of wall hangings with many different designs. They typically produce at least 50 hangings with a single machine setup. Each time a machine is setup, the cost incurred is called

a. product-level cost

b. batch-level cost

c. facility-level cost

4. Which of the following is more appropriate to be a cost driver for machine setup activity cost

a. number of setups

b. machine hours

c. number of workers