26 The challenge in designing an activity-based costing system isto identify areasonably 26) small number of activities that explain the bulk of the variation in averhead costs. 27) Facility-level activities are activities that are camied out regardless of which products are produced, how many batches are run, or how many units are made. 28) Companies use three common approaches to assign overhead coststo products 28) most accurate of these three approaches is departmental overhead rates. 29) When designing an activity-based costing system, accountants should be tasked with 29) identifying the activities they think are important and that consume mast of the n the organization. 30) If a company has a great deal of product diversity. activity-based costing will generally 30) yield less accurate product costs than traditional methods based on direct labor or 31)A plantwide predetermined overhead rate based on direct labor-hours results in high 3) overhead costs for products with a high direct labor-hour content and low overhead costs for prod ucts with a low direct labor-hour content. 32) An activity rated is computed for each activity cost pool not for each product. 33) in activity-based costing, unit product costs computed for extemal financial reports 33) include direct materials, direct labor, and only a part of manufacturing overhead costs. MULTIPLE CHOICE 34) Material handling is an example of a: 34) A) Unit-level activity Product-level activity D) Facility-level activity. 35) The plant manager's work is an example of a: 35) A) Unit-level activity. B) Batch-level activity C) Product-level activity. 36) Which of the following would be classified as a product-level activity? A) Setting up a machine for a standard product. B)Operating a cafeteria for employees. C) Personnel administration. DO Testing a prototype for anew model. 37) in activity-based costing, unit product costs computed for extermal financial reports do 37) Courses Calendar To Do Notifications Messages