Activity$-$based costing $($ABC$)$ can eliminate cost distortions because ABC:

$$ a$.$ develops cost drivers that have a cause$-$and$-$effect relationship with the activities performed

$$ b$.$ establishes multiple cost pools

$$ c$.$ eliminates product variations

$$ d$.$ recognizes interactions between different departments in assigning support costs

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$16.$ A single indirect$-$cost rate based on direct manufacturing labor$-$hours for the entire plant is:

$$ a$.$ $$8$ per direct labor$-$hour

$$ b$.$ $$10$ per direct labor$-$hour

$$ c$.$ $$20$ per direct labor$-$hour

$$ d$.$ None of these answers is correct.

$$

$17$ The budgeted indirect$-$cost driver rate for the Machining Department based on the number of machine$-$hours in that department is:

$$ a$.$ $$5$ per machine$-$hour

$$ b$.$ $$10$ per machine$-$hour

$$ c$.$ $$20$ per machine$-$hour

$$ d$.$ None of these answers is correct