The overhead application method that considers non-volume-related activities that create overhead costs as well as volume-related activities is: 6 a. Direct labor hours b. Direct labor dollars c. Machine hours d. Activity-based costing 7. A segment of an organization is referred to as a service department if it has: a. Responsibility for developing markets for and selling of the organization's output b. Responsibility for combining the raw materials, direct labor, and other production factors into a final output c. Authority to make decisions affecting the major determinants of profit, including the power to choose its markets and sources of supply d. Authority to provide specialized support to other units within the organization 8. A department that would be classified as a service department is: a. Assembly b. Human Resources c. Forming d. Finishing 9. The most reasonable base for allocating the cost of a human resources department is: a. Number of emplovees b. Materials used c. Square footage d. Building depreciation The method for allocating service department costs that results in the least precision is a. Direct method b. Sequential method 10. c. Algebraic method d. Step-down method