A radial tire manufacturer produces products in two departments-Divisions A and B. The company uses separate predetermined overhead allocation rates for each department to allocate its overhead. Divisions A and B have estimated manufacturing overhead costs of $160, 000 and $340, 000, respectively. Division A uses machine hours as the allocation base, and Division B uses direct labor hours as the allocation base. The total estimated machine hours were 31, 000, and direct labor hours were 23, 000 for the year. Calculate the departmental predetermined overhead allocation rates. A. Division A-$10.97, Division B-$6.96 B. Division A-$14.78, Division B-$5.16 C. Division A-$5.16, Division B-$14.78 D. Division A-$6.96, Division B-$10.97 Which of the following statements is true of an activity-based costing system? A. It is not as complex or as costly as traditional systems. B. It accumulates overhead costs by processing departments. C. It is not as accurate or precise as traditional costing systems. D. It uses separate predetermined overhead allocation rates for each activity. Pitt Jones Company, a manufacturer of small appliances, had the following activities, allocated costs, and allocation bases: What is the cost per line for the account billing activity? (Round your answer to the nearest cent.) A. $12.31 B. $1.78 C. $3.39 D. $23.46 Bag Ladies, Inc, manufactures two kinds of bags-totes and satchels. The company allocates manufacturing overhead using a single plant wide rate with direct labor cost as the allocation base. Estimated overhead costs for the year are $26, 000. Additional estimated information is given below. Calculate the amount of overhead to be allocated to Totes. (Round any percentages to two decimal places and your final answer to the nearest dollar.) A. $400 B. $13, 203 C. $12, 797 D. $520