The Chocolate Baker specializes in chocolate baked goods. The firm has long assessed the profitability of a product line by comparing revenues to the cost of goods sold However, Barry White, the firm's new accountant, wants to use an activity-based costing system that takes into consideration the cost of the delivery person. Listed below are activity and cost information relating to two of Chocolate Baker's major products Revenue Cost of goods sold Muffins $53,000 26,000 Cheesecake $46.000 21.000 Delivery activity: Number of deliveries Average length of delivery Cost per hour for delivery 150 10 minutes $20.00 85 15 minutes $20.00 Using activity-based costing, which one of the following statements is correct? The muffins are $1,925 more profitable. The cheesecakes are $75 more profitable. The muffins are $2,000 more profitable. The muffins have a higher profitability as a percentage of sales and therefore are more advantageous. QUESTION 31 Job costing is most useful when Products are homogeneous or when groupings are not easily identifiable Special products, each differing as to product specifications, are produced Variable costing is used. Standard costing is used