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PART 2: Scenario-Based Multiple-Choice Questions Use the below information to answer the following THREE questions (numbered 4 through 6). Tam Company uses an activity-based

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PART 2: Scenario-Based Multiple-Choice Questions Use the below information to answer the following THREE questions (numbered 4 through 6). Tam Company uses an activity-based costing system with three activity cost pools. The company has provided the following information concerning its costs and its activity-based costing system. The "Other" activity cost pool consists of the idle capacity and organization-sustaining costs. Cost Manufacturing Overhead Selling and Administrative Expenses Total Given below is the distribution of resource consumption. Amount $760,000 230,000 $990,000 Activity Cost Pools Cost Manufacturing Overhead Order Size Customer Support Other Total 55% 40% 5% 100% Selling and Administrative Expenses 45% 45% 10% 100%

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