Q13 (18 pts) Arswer the following multiple chofice questuris Post vour naswers in the table below: THE FOLLOWNGG INHORMATION APRLIES TOQCIESHONS I AND 2 : Cunnady produces sixproducts. Under their traditional cost syitem using one cost driver. sRa costs $168,00 per anit. An andaysis of the setivieies and their costs revealed that the to $178.00 would be used under the new. ABC systent. The new cost of SR6 was determined wo ber and method is peranit: I. The total amount of indirece costs assigned to protuct SR 6 using the triditional method is the total amount assigned using ABC. a. more thin b. less than c. identical to d. None of these answers ne correct. 2. Given this change in the cost: a. SR6 will now command a higher sales price b. SR6 has bencfitod from the new system c. SR6 is definifely more sccurately costed d. The costing results for SR6 under the new system depend on the adequacy and quality of the estimated cost drivers and costs used by the systorm THE FOLLOWING INFORMATION A PPLTES TO QUESTIONS 3 THROUGH 8: King two s the Small Department would be: a. $50,000 b. $75,000 c. $210,000 d. $250,000 4. If total advertising expense of $300,000 is allocated on the basis of sales, the amourt allocated fo the Large Department would be: a. $225,000 b. $90,000 c. 5250,000 d. $50,000 5. If total payrall processing costs of $96,000 are allocated on the basis of number of employees, the amount allocated to the Small Department would be: a. $67,200 b. $24,000 c. 516,000 d. $28,000 a. $42;000 b. $18,000 c. $45,000 d. $50,900 7. Ir rotal rent expense of $120,000 is allocsted on the basis of wquare foctage, the asiount allocated to the Scuall Department would ber a. 520,000 b =$30,000 c. $4,000 d. $90,000 8. If total rent expensit of $288,000 is allocated on the basis if square footrge, the antiount allocated to the Large Department would be: a. $86,400 b. $240,000 d. $72,000 d. $216,000