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need 2/5 answered soon 1. Acthity based costing sytem deffers from traditional coutine syitems in the treatment of A) direct labor costs B) direct material
need 2/5 answered soon
1. Acthity based costing sytem deffers from traditional coutine syitems in the treatment of A) direct labor costs B) direct material costs C) prime costs (D) overhesd costs 2. Which of the following is not typical of traditional costing svitems? A) Use of a sigie preditermintd ovethead rate. B) Use of direct labor hours or direct labor cost to assign overthead. C) Assumption of correlation betwven dicect labor and incurrence of overhead cost: D) Use of multiple cost dtivers to allocate ovethead 3. Which of the following factors would susgest a switch to activity based costing? A) Product lines similar in volume and manufacturing complenity. B) Overhead costs conysitute a significant pertion of total costs. C) The manufacturing process has been stable. D) Production managers use data provided by the existing aystem. 4. Activity based costing (ABC) can eliminate cost distortions because ABC systems AJ establish a cause-and-effect relationship with the activities performed a) use single cost pool for all ovechead costs, thereby enabline simplitity c) use a broad average to allocate all overhead costs D) never consider interactions between different departments in assigning support costs 5. Ace Co, currently manulactures two products, 61 and 82 . It currenty uses a traditional costing Frstem with direct labor hours as the activity to allocate overhead costs to both products. Ace's total everhead costs are $50,000. The total direct labor hours are 10,000 (5,500 hrs, for B1 and 4,500 for B2). Management is considering switching to the ABC system and has identified the following acthities and related drivers: Use the data above to compute the amount of overhead to charge to B1 under traditional costing. Use the data above to compute the amount of overhead to charge to 82 under ABC costing Step by Step Solution
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