Truc/False 7 points) 1-Process costing works well whenever different products pass through a series of processes ard receive different doses of materials and conversion costs 2-Direct method ignores the services provided by a service department to other service departments 3-A unit-level driver is consumed by a product each and every time that a unit is produced 4-Cost accumulation is more complex in a process costing system than a job order costing system S-The FIFO method of process costing is a method in which equivalent units and unit costs relate only to work done during the current period. 6- The reciprocal method gives full recognition to interdepartmental services. 7-In activity based costing we recognize that many nonmanufacturing costs relate to selling. distributing, and servicing specific products Question # 1 (15 points) The following activities occur at Kyle Corporation, a company that manufactures a variety of products I-Providi 2-Setting up equipment.. 3-Advertising a product. 4-Arranging for loans. 5-Arranging for shipments to customers.. ng power to run processing equipment Classify each of the activities as either a unit level, batch level, product level or organizational sustaining activity Question # 2 (20 points) Michael Manufacturing produces two types of battery-operated toy soldiers: infantry and special forces. The solders are produced by using one continuous process. Four activities have been identified: machining, setups, receiving and packing. Resource drivers have been used to assign costs to each activity. The overhead activities, their costs and the other related data are as follows PRODUCT MACHINE HOURS SETUPS RECEIVING ORDERS PACKING ORDERS Infantry Special forces 1-200 800 $40,000 900 100 20,000 $120,000 200 $28,000 Costs $18,000 I-Calculate a rate for each activity by using the associated driver 2-Assign the overhead cost to each product by using the activity rates computed in # 1