1a) Which of the following is True?

a. Activity based costing is used to allocate direct labor and raw material costs to various products produced by the company.

b. Activity based costing first assigns costs to products and then uses these product costs to assign costs to manufacturing activities.

c. Activity based costing systems trace factory overhead to products rather than allocating overhead as is done in more traditional costing systems.

d. With activity based costing, the same overhead application rate for a given cost activity pool is used to apply the overhead to each product that requires that activity.

e. The primary purpose of activity based costing is to reduce total overhead cost without sacrificing product quality.

1b) A company estimates total overhead costs for the next year to be $1,200,000 and wishes to use direct labor hours as its overhead allocation base. This company makes two products: (1) Fancy X, which requires three direct labor hours per unit, and (2) Plain X, which requires one direct labor hour per unit. If the company plans to make 10,000 units of Fancy X and 10,000 units of Plain X, then how much overhead will be allocated to each product?

a. $600,000 to each.

b. $900,000 to Fancy X and $300,000 to Plain X

c. $1,800,000 to Fancy X and $600,000 to Plain X

d. $800,000 to Fancy X and $400,000 to Plain X

1c) Which of the following driver activities might be used in an activity based costing system?

a. Factory space utilized.

b. Machine hours

c. Raw material costs

d. All the above may be used as driver activities

All 3 since they are under 1 question please. Thank you!