nalyzing and Applying Activity$-$Based Costing $$ CMA adapted

$1.$ All of the following are likely to be used as a cost allocation base in activity$-$based costing except the Answer $1$a$.$b$.$c$.$d$.$

a$.$ number of different materials used to manufacture the product.

b$.$ units of materials used to manufacture the product.

c$.$ number of vendors supplying the materials used to manufacture the product.

d$.$ cost of materials used to manufacture the product.

$2.$ Pelder Products Company manufactures two types of engineering diagnostic equipment used in construction. The two products are based upon different technologies, x$-$ray and ultra$-$sound, but are manufactured in the same factory. Pelder has computed the manufacturing cost of the x$-$ray and ultra$-$sound products by adding together direct materials, direct labor, and overhead cost applied based on the number of direct labor hours. The factory has three overhead departments that support the single production line that makes both products. Budgeted overhead spending for the departments is as follows.

DepartmentEngineering designMaterial handlingSetupTotal$$6,000$$$5,000$$$3,000$$$14,000$