1.Which of the following are characteristics of process cost systems?

They used by companies that mass-produce similar products in a continuous fashion.

They are best utilized when tracking costs by department are not important.

They are focused on tracking job cost information.

They help determine inventory amounts but not cost of goods.

2.Sunland Company manufactures two products, Mini A and Maxi B. Sunland's overhead costs consist of setting up machines, $ 790000; machining, $ 1970000; and inspecting, $ 560000. Information on the two products is:

	Mini A	Maxi B
Direct labour hours	15000	25000
Machine setups	700	500
Machine hours	26000	28000
Inspections	700	600

Overhead applied to Maxi B using traditional costing and direct labour hours is

$ 1725000.

$ 1581250

$ 1245000.

$ 2075000.