c. assigns activity cost pools to products and services, then allocates overhead back to the activity cost pools. d. allocates overhead directly to products and services based on activity levels e. none of these answers are correct. 21. Which of the following has the weakest linkage between activity and cost driver? Activity Machine setup Machine maintenance Lighting on shop floor Quality control Manual cloth making Cost Driver Number of setups Book value of machines Number of kilowatt-bours Square feet of floor space Direct labor hours 22. Hollyhock Co. manufactures a variety of drill bits. The company's plant is partially automated. The budget for the year includes $412,000 paroll for 4 800 direct labor hours. Listed below is cost driver information used in the product-costing system: Overhead Cost Pool Machine setups Material handling Quality control Other overhead cost Total Overhead Budgeted Overhead $ 120,000 104,400 264,000 144,000 $ 632,400 Cest Driver of setups of barrels of inspections #of machine hours Estimated Cost Driver Leve! 120 setups 8,700 barrels 1.100 inspections 12,000 machine hours A current product order has the following requirements: Machine setups Material handling Quality inspections Machine hours Direct labor hours 8 setups 606 barrels 80 inspections 30 machine hours 336 hours What is the total manufacturing overhead for the current product order if the firm uses a plantwide rate based on direct labor-hours? a $ 9,960, b. S 30.240 C$ 43.741 d. S 44,268. e. $109,352 23. Assigning overhead using ABC will usually a decrease the cost per unit for low volume products as compared to a traditional overhead allocation. b. increase the cost per unit for low volume products as compared to a traditional overhead allocation c. provide less accurate cost per unit for low volume products than will traditional costing. d. result in the same cost per unit for low volume products as does traditional costing. e none of these answers are correct. 24. In an organization that makes furniture, which of the following is a high value-added activity