statements is true of an activity-based costing (ABC) system? 1. Which of the following a. An activity-based costing system focuses only on directly tracing the cost r b. In an activity-based costing system, costs are assigned directly to cost objects and hence are more accurate. c. In an activity-based costing system, costs are first assigned to cost activities and then to cost objects. d. An activity-based costing system assigns actors to the units produced. more direct costs to overheads compared with other conventional costing methods. 2. Which of the following statements is true of resource drivers? a. They measure the consumption of resources by activities. b. They measure the consumption of activities based on products and other cost c. They are used each time a unit is produced. d. They emphasize on direct tracing 3. A company produced 12,000 units of a product. The prime cost was $407,000. In total, 2,200 machine hours were used to produce the product. Setup hours for the period were 1,400. The activity rates were $45 per machine hour and $110 per setup hour. What is the unit cost of the product using overhead rates based on machine hours and setup hours? a. $42 b. $34 c. $21 d. $55 Previous 1 more Check My Work uses remaining