Which of the following is not one of the four steps in accounting for production activity in a period A Determine over or underapplied overhead. B. Analyze the physical flow of units. C. Analyze equivalent units. D. Determine cost per equivalent unit. Prepare a cost reconciliation system? 20. Which of the following is true when computing cost per equivalent unit in a FIFO process costing A. Prior period costs are combined with costs incurred in the current period and then divided by the equivalent units of production. Costs incurred in the current period are divided by the equivalent units of production Total cost to account for is divided by the equivalent units of production D. Equivalent units of production are divided by costs incurred in the current period. E Equivalent units of production are divided by cost to account for. 21. Which of the following is not typical of traditional costing systems? A. Use of a single predetermined overhead rate. B. Use of direct labor hours or direct labor cost to assign overhead. Assumption of correlation between direct labor and incurrence of overhead cost. D. Use of multiple cost drivers to allocate overhead. 22.In traditional costing systems, overhead is generally applied based on A. Direct labor. B. Machine hours. C Direct material dollars. D. Units of production. 23. An activity that has a direct cause-effect relationship with the resources consumed is an) A. Cost driver. B. Overhead rate. C. Cost pool. D. Product activity. 24. Which best describes the flow of overhead costs in an activity-based costing system? A. Overhead costs direct labor cost or hours 0 products B. Overhead costs products C. Overhead costs activity cost pools cost drivers products D. Overhead costs machine hours products 25. The costs that are easiest to trace directly to products are Direct materials and direct labor. B. Direct labor and overhead. C. Direct materials and overhead. D. None of the above; all three costs are equally easy to trace to the product