4. Cost-based pricing would typically be used to price: a. Tee-shirts at a local clothing store b. Defense products sold via contract with the U.S. Government c. Highly elastic products such as soft drinks d. Answers a. and b. are correct. 5. Hawk Hospital incurs medical supply costs, which are associated with the cost of needles, bandages, and containers for donated blood. The most likely cost driver for the medical supply cost pool is: a. Hours available for blood donations. b. Number of blood drive donors. c. Dollar value of blood donated. d. Percentage of square feet occupied by the blood drive. Quail Quilts is considering transitioning to an activity-based costing (ABC) system and has gathered the following information: The direct materials associated with a standard quilt are $80 per unit and direct labor is $50 per unit. Calculate the total cost of standard quilts if 1,000 standard quilts and 500 deluxe quilts were produced. a. $43,000 b. $80,000 c. $160,000 d. $130,000