7)

an activity-based overhead rate is computed as follows:

a.

actual overhead divided by actual use of cost drivers.

b.

estimated overhead divided by actual use of cost drivers.

c.

actual overhead divided by estimated use of cost drivers

d.

estimated overhead divided by estimated use of cost drivers.

8)

identifying and classifying activities is the:

a.

first step under ABC

b.

last step under ABC.

c.

second step under ABC

d.

None of these answers is correct.