53.

Which statement is true regarding the activity-based costing system when compared to the traditional costing system?

A Activity-based costing systems require more time and expense to administer than do traditional costing systems.

B Activity-based costing systems are based on a single cost driver such as units of output.

C Activity-based costing systems provide a less accurate assignment of overhead costs when multiple products are manufactured than do traditional costing systems.

D Activity-based costing systems utilize direct labor hours as the only basis for assigning overhead costs to products

56.

A manufacturer produces three products: A, B, and C. The company uses the following information to determine activity rates for each

Cost Pool Costs Total Activity

Pool 1 300,000 20,000 hours

Pool 2 20,000 500Pounds

Pool3 10,000 100 moves

Total 330,000

Cost Driver Product B

Number of hours 7,500

Number of pounds 250

Number of moves 30

What is the total amount of overhead applied to product B?

A265,000

B125,500

C158,000

D112,500

A company has projected the following sales for the spring quarter of 2014

April

May

June

65% of all sales are paid for with cash

Month of Sale

Month After Sale

Second Month After sale

What are the credit sales for the spring quarter (all three months)?

A344,750

B190,750

C253,750

D308,750