Figure 7-5. Rizzo Manufacturing produces two types of cameras: 35mm and digital. The cameras are produced using one continuous process. Four activities have been identified: machining, setups, receiving, and packing. Resource drivers have been used to assign costs to each activity. The overhead activities, their costs, and the other related data are as follows:

Product	Machine Hours	Setups	Receiving Orders	Packing Orders
35mm	10,000	100	200	400
Digital	10,000	250	800	2,000
Costs	$60,000	$40,000	$8,000	$24,000

4. Refer to Figure 7-5. Calculate the total overhead assigned to the 35mm cameras using only machine hours to calculate a plantwide rate.

	a.	$132,000
	b.	$72,000
	c.	$60,000
	d.	$75,000
	e.	$66,000

5. Refer to Figure 7-5. Calculate a consumption ratio for setups on the digital cameras.

	a.	0.688
	b.	0.730
	c.	0.700
	d.	0.714
	e.	0.500

6. Refer to Figure 7-5. Using an activity rate for receiving based on receiving orders, assign receiving costs to the 35mm camera.

	a.	$1,800
	b.	$2,000
	c.	$1,600
	d.	$1,200
	e.	$4,000

7. Refer to Figure 7-5. Calculate an activity rate for packing based on packing orders.

	a.	$9.00 per packing order
	b.	$10.00 per packing order
	c.	$8.00 per packing order
	d.	$60.00 per packing order
	e.	$1.20 per packing order

8. A costing system that first assigns costs to activities and then to products is

	a.	activity-based costing.
	b.	job-order costing.
	c.	activity-based management.
	d.	volume based costing.
	e.	nonunit-level costing.