Sanding 11. Job335 requires work in the following departments Machining: 4 hours oma 1 hour direct labor Painting 2 hours including dry time of 1.5 hours) The companys department overdraes Overhead isocated at the f ront abe hour in Sanding and $15machine hour in Machining Painting overhead is located on the basis of total time in the department and is located at a rate of Shour. How much overhead is located to the job? A) $45 B) $72 C) $67.50 D) $78 E) None of the above 12. Which of the following activities would incur costs that could be tracked and located using Activity Based Costing? A) Machine set-ups B) Customer being process C) Payroll preparation D) Equipment maintenance and routine cleaning CE) All of the above 13. Using a company wide overhead rate rather than Activity Based Costing might lead to which of the following problems? A) Overpricing products B) Over-application of overhead to services C) Discontinuing unprofitable operations D) Continuing profitable operations E) All of the above 14. Which of the following might be reasons to continue serving an unprofitable customer? A) The customer is new and requires significant support costs in the early stages of the business relationship. B) The company is trying to enter a new market or region. C) The business relationship facilitates other, more profitable, business contracts. D) None of the above E) All of the above 15. Caleb Construction (CC) incurs supervisor salaries expense in the construction of homes. If CC manufactures 100 homes in a year, fixed supervisor salaries will be $400,000. With the current construction supervisors, CC's productive capacity is 150 homes in a year. However, if CC is contracts to build more than 150 homes per year, it will need to hire additional supervisors, which a hired as full-time rather than temporary employees. CC's productive capacity would then become 2 homes per year, and salaries expense would increase to $470,000. How would CC's salaries expense be properly classified? A) Fixed B) Variable C) Mixed D) Stepped E) Curvilinear