r aiswers l) An activity that is performed to support a specific product line is a(n): A) facility-level activity. C) batch-level activity. B) unit-level activity. D) product-level activity. 2) Which of the following statements is correct about the differences between a volume-based cost system and an ABC system? A) The only difference is how the methods assign indirect costs to products. B) The only difference is how the methods assign direct costs to products. C) There is no difference in how the methods assign direct or indirect costs to products D) The methods assign both direct and indirect costs differently to products. 3) Lynwood, Inc. produces two different products (Product A and Product X) using two different activities: Machining, which uses machine hours as an activity driver, and Inspection, which uses number of batches as an activity driver. The activity rate for Machining is $125 per machine hour, and the activity rate for Inspection is $500 per batch. The activity drivers are used as follows: Product A Product X Total 3,000 4,000 60 Machine hours 1,000 Number of batches 45 15 What is the amount of Machining cost assigned to Product X? B) $375,000 C) $22,500 D) $125,000 A) $500,000