at a pet food manufacturer is considering ading two types of pet food to its existing food in 40-pound bags Assume th product line. Research had determined that good demand exists for dog and cat food in 1/2pound cans The company ideatified for the next year the following partial list of sctivities, costs, and activity drivers expected Expected Cost Driver Activity Costs Handling materials$105,000 Number of made Storage costs$820,000Weight of finished product Dog Food Cat Food Production volume 100,000 units 200,000 units Batches made 200 batches 150 batches 44. Refer to the data above. What are the overhead rates used to apply material handling (MH) and storage costs (SC) using activity-based costing? a) MH $300/batch; SC $2.73/unit. b) MH $300/batch; SC $.20/1b. c) MH $525/batch: SC S.205/unit d) MH S700 batch; SC $.205/1b c) MH $700/batch; SC $8.201b. 45. Which of the following statements is true of activity-based costing? a) ABC ignores the allocation of marketing costs b) ABC classifies some indirect costs as direct costs e) ABC is more likely to result in big business makes only one product rather than multiple products. Activities are the cost objects of the second stage of ABC. d) 46. ABC systems a) usually will undercost complicated or complex products b) will limit cost drivers to units of output c) highlight the different levels of activities d) will allocate costs based on the overall level of activity