Please also provide explanations and/or cite your sources for each question.

XIV. (18 pts.) Multiple choice - circle the letter of the one best answer for each question. 1. With activity based costing: a. product cross-subsidization is rampant. b. cost drivers reflecting both complexity and volume are generally used. c. both preliminary and primary stages of allocation must be made. d. at least four cost drivers must be used. e. non-manufacturing costs must be assigned using volume-based cost drivers. 2. The maximum amount of product that can be manufactured with existing facilities is known as: a. expected volume b. practical capacity c. normal volume d. limited capacity e. ideal capacity 3. The dual-rate method of cost allocation a. allocates variable costs on the basis of predetermined percentages. b. allocates fixed costs on the basis of actual activity. c. allocates fixed and variable costs differently. d. uses the direct method and step method simultaneously. e. Both (a) and (d) are true. 4. A standard price is the same as a(n): a. budgeted price b. actual price c. budgeted quantity d. favorable price e. actual rate 5. For direct labor, standard hours: a. is the same as budgeted hours b. is always greater than actual hours c. is the amount of hours that should have been worked to produce the actual output d. is the amount of hours that should have been worked to produce the budgeted output e. both (b) and (c) are correct 6. Which one of the following would not be the cause of a materials price variance? a. materials substitutions. b. purchase of higher quality materials. C. changes in the mode of transportation for incoming materials. d. failure to take cash discounts. e. machine settings operating at nonstandard levels