14. Activity-based costing A) assigns activity cost pools to products and services, then allocates overhead back to the activity cost pools. B) allocates overhead to activity cost pools, and it then assigns the activity cost pools to products and services by means of cost drivers. C) accumulates overhead in one cost pool, then assigns the overhead to products and services by means of a cost driver. D) allocates overhead directly to products and services based on activity levels. 15. Reynoso Corporation manufactures titanium and aluminum tennis racquets. Reynoso's total overhead costs consist of assembly costs and inspection costs. The following information is available: Titanium Total Cost Assembly 500 mach. hours 500 mach. hours $60,000 Inspections 350 1500 S100,000 2,100 labor hours 1,900 labor hours. Reynoso is considering switching from one overhead rate based on labor hours to activity-based costing Using activity-based costing, how much assembly cost is assigned to titanium racquets? B) $42,000. C) $30,000. D) $31,500 16. The primary benefit of ABC is it provides A) more accurate product costing. B) enhanced control over overhead costs. C) better management decisions. D) more cost pools. 17. A variable cost is a cost that A) varies in total in proportion to changes in the level of activity. B) varies per unit at every level of C) occurs at various times during the year. D may or may not be incurred, depending on management's discretion