1. The process of assigning a costo two or more designated cost objects s a cost tracing b. costallocation c. cost/benefit analysis d. costclassification 2. Of the following statements, which is NOT true concening indirect costs? a. An allocation rate for an indirect cost is determined by dividing the total cost to be allocated by an appropriate cost driver b. An indirect cost is a cost that cannot easily be traced to a cost object. c. The infomational benefits from tracing an indirect cost are not worth the economic sacrifice incurred in tracing the cost d. An indirect cost can be fixed but it cannot be variable. 3. Logan Corporation has 30 employees, 20 in Department A and 10 in Department B. Logan incurred S180,000 in fringe benefits costs last year. How much in fringe benefit costs should be allocated to Department A? a. S 60,000 b. $120,000 c. $180,000 d. $90,000 4 Which of the following would be classified as an indirect cost in a department store? Assume the costobject is the children's department. a. sales commissions b. costof goods sold c. utility costs d. depreciation on cash registers Use the following data to ans wer the next two (2) questions: Product 1 Product 2 Product 3 Direct Material Cost $30,000 Direct Labor Hours 1.200 hours 1 800 hours 2000 hours Factory overhcadis estimuted to he $40,000 and is applied based on direct labor dollirs This overfiead costis aot traceable to any particular product. S. Factory overhead allocated to Product 2 a. $13,333 b $24,000 $20,000 d $14,400 6 The total cost of Product I is a $55,000 b $62500 c 565,00 d 583 333