Q14. Of the four steps in preparing a production cost report, which step occurs first? epare a cost reconciliation schedule. mpute equivalent units of production. 5/10 ampute the physical unit flow D. Compute unit production costs. Q15. Which of the following statement is false? A. A traditional costing system allocates overhead by means of multiple overhead rates. B. Dircct material and direct labor costs are casier to trace to products than overhcad C. As manufacturing processes have become more automated, more companies have chosen to allocate overhead on the basis of machine hours. D. In activity-based costing, an activity is any event, action, transaction or work sequence that incurs cost when producing a product. Q16. Bervine, Inc. produces two different products (Bompers and Woobles) using two different activities: Machining, which uses machine hours as an activity driver, and Inspoction, which uses number of batches as an activity driver. The cost of Machining is- $500,000, while the cost of Inspection is $30,000. Usage of the activity drivers are as follows Total 4000 60 rs Woobles Machine hours 1000 3000 Number of batches 15 What is the activity rate for Inspection? A. S125 per batch B. S500 per batch C. S667 per batch D. S2,000 per batch Q17. Which of the following factor would not point to the use of ABC system? A. Product lines differ in volume and manufacturing complexity B. Product lines are similar and require same support services. C. Overhead costs constitute a significant portion of total costs D. Production or marketing managers are gnoring data provided by the existing system Q18. An activity that adds costs to the product but does not increase its market valae is A Cost driver, B. Value-added activity. C. Cost-benefit activity. D. Non-value-added activity