Carr Manufacturing makes a product that incurs prime costs of $320,000. Production uses 1,100 setup hours and 2,000 machine hours. Activity rates are $75 per setup hour and $50 per machine hour. Carr's total product cost is:

a.$100,000.

b.$320,000.

c.$182,500.

d.$502,500.

Activity drivers are:

a.factors that are related to each unit of the product.

b.not required under activity-based costing.

c.factors that measure the consumption of activities by products.

d.not realistic in today's manufacturing environment.

The purpose of interviewing managers or representatives of functional work areas is to:

a.determine the number of direct labor hours.

b.identify customers.

c.determine the cost associated with activities.

d.identify activities.