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A basic assumption of activity based costing (ABC) is that O All manufacturing costs vary directly with units of production O Only variable costs are

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A basic assumption of activity based costing (ABC) is that O All manufacturing costs vary directly with units of production O Only variable costs are included in the activity cost pools O Products or services require the performance of activities and activities consume resources Only costs that respond to unit-level drivers are product costs Banc Corp. Trust is considering either a bank wide overhead rate or department overhead roles to locate $395.000 of indirect costs. The bank wide rate could be based on the direct labor hours (DLH or the number of loans processed. The departmentales would be based on direct labor hours for Consumer Loans and adulrate based on direct bor hours and the number of loans processed for commercial Loans The following formation was there for the upcoming period Department Consumer commercial MODO B000 10000 Banc Corp. Trust uses a bankwide rate based on direct labor hours, what would be the Indirect costs located to the Commercial Department $144.000 $138,000 $180,000 $148,500 Flawless Cosmetic Company manufactures and distributes several different products. The company current es plantwideocation method for locating overhead role of $7 per direct labor hour. Loren is the department manager of the Makeup Department which produces Products Concealer and Glow Cream GC Jennifer is the department manager of the Hair Care Department which manufactures Product Shampoo S. The product cost percase of 24 bo n d other information are as follow Direct matar Direct labor $10000 100 000 200 2100 17000 134 0 0 200 400 1400 Over Uchine hours Number of seserye SOO Based on this information, Rewiess changes its allocation basis to machine hours, what is the overhead rate per machine hour? $3.00 O $200 O $6825 O $2100 Miracle Casing Corporation head General Service and Research Service. These come e d to the M t other's en come branches be w Activity Cout Pool Computer tome S DOO Estimated branch o f Portland 301 50 200.000 minutes 750.000 minutes S0000 How much of the headquarters cost location should the Dallas o expect to receive next year O $280.000 $409,500 OSSO4.000 O $472,500

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