1-3

1 Which would be an appropriate cost driver for the machining activity cost poo a. Machine setups b. Purchase orders c Machine hours 2 Hartman Company's activity cost pools is nspecting, with estmated overthead f $140.000. Hartman produces throw rugs (700 inspections) and area rugs (1.300 inspections). How much of the inspecting cost pool should be assigned to throw ngs? a $49,000. b $70,000. . $75.384 d $140,000 3. Which of the following factors would suggest a saitch to activity-based costing? A) Product lines similar in volume and manufacturing complexity B) Overhead costs constitute a signifcant partion of total costs C) The manufacturing process has been stable D) Production managers use data provided by the existing system