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1. Fox Hunting Gear manufactures two products: camouflage jackets and camouflage hats. The company makes 50,000 jackets and 20,000 hats each year. Information for overhead costs and for the two products appears below. Estimated Total Activity Driver Overhead Jackets Hats Cost Setups # of setups $ 200,000 500 setups 1,500 setups Ordering # of parts 300,000 60,000 parts 40,000 parts parts Machining # of machine hours 600,000 12,000 machine hrs. |6,000 machine hrs. Inspections # of inspections 400,000 10,000 inspections 40,000 inspections Shipping # of shipments 300,000 10,000 shipments 10,000 shipments Total $1.800.000 overhead Assume that all overhead is assigned to products using machine hours. How much overhead will be assigned to each jacket? A) $17.20 per jacket B) $100,000 per jacket C) $24 per jacket D) $150 per jacket Managers are correct when they perceive that almost all cost allocations are A) unnecessary. B) insignificant. C) arbitrary. D) designed to make them look bad. 3. From a decision-making standpoint, the allocated cost should measure the opportunity cost of using a company resource. A) True B) False