(1.5 each) 1. Which would be an appropriate cost driver for the machining activity cost pool? a. Machine setups b. Purchase orders c. Machine hours d.. Inspections 2. Hartman Company's activity cost pools is inspecting, with estimated overhead of $140,000. Hartman produces throw rugs (700 inspections) and area rugs (1,300 inspections). How much of the inspecting cost pool should be assigned to throw rugs? $49,000. a b. $70,000. 3. Which of the following factors would suggest a switch to activity-based costing? A) Product lines similar in volume and manufacturing complexity. B) Overhead costs constitute a significant portion of total costs. C) The manufacturing process has been stable. D) Production managers use data provided by the existing system. C. $75,384. d. $140,000. 4. One of Hatch Company's activity cost pools is machine setups, with estimated overhead of $400,000. Hatch produces sparklers (700 setups) and lighters (900 setups). How much of the machine setup cost pool should be assigned to sparklers? $300,000 $120,000 a. b. C. d. $175,000 $225,000 5. In applying the high-low method, what is the fixed cost? Month January February March April a. $26,250 b. $54,000 C. $21,000 d. $75,000 Miles 80,000 50,000 70,000 90,000 Total Cost $144,000 120,000 141,000 195,000 5