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MedTech, Inc., manufactures and sells diagnostic equipment used in the medical profession. Its job costing system was designed using an activity-based costing approach. Direct materials

MedTech, Inc., manufactures and sells diagnostic equipment used in the medical profession. Its job costing system was designed using an activity-based costing approach. Direct materials and direct labor costs are accumulated separately, along with information concerning four manufacturing overhead cost drivers (activities). Assume that the direct labor rate is $25 per hour and that there were no beginning inventories. The following information was available for 2016, based on an expected production level of 371,429 units for the year:

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value _ Reuulmn inromlaliml 0.93 polnts b. Whlch of the foliuwing are the advantages of the ABC approach reialive in using a slngle predelermlned uverhead applicallun rate based on dlrect labor huurs (Note You do not have to caleuiale the overhead ihat wpuld be applied fur ihe momh of August uslng this alternatlve method) (Select all that apply.) ABC does nul help ln declslunrmaklng. ABC syslems pruduce mute accurale nancial infurmatlan ABC approach is iikeiy to DIDVIGE better lnlnrmalion to manufactuling managers, ABC helps In decl onrmaklng ABC systems produce more accurate product cosllng lnmrmallnn, Raf-mnnn

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