QUESTION 6 Arizaga Corporation manufactures canoes in two departments, Fabrication and Waterproofing. In the Fabrication Department, fiberglass panels are attached to a canoe-shaped aluminum frame. The cances are then transferred to the Waterproofing department to be coated with sealant. Arizaga uses a weighted average On July 1, the fabrication Department had 320 canoes in process that were not yet completed. On July 31, Fabrication had 540 canoes still in process. During July the Fabrication Department completed 6,700 canoes and transferred them to the Waterproofing Department On July 31, it was determined that the Fabrication Department was 30% complete with respect to conversion cost for the 540 canoes still in process: What are the Fabrication Department's equivalent units of production related to conversion for July? 2172 equivalent units. 7240 equivalent units 162 equivalent units 6862 equivalent units. None of the above QUESTION 7 An advantage of using Activity Based costing in It is less expensive and less time consuming than Job-Order Costing It is required under GAAP. It requires no overhead rates It is more accurate and effective in managing costs and looking for improvements