Under a traditional costing system that allocates overhead on the basis of direct labor hours, the inspection costs allocated to one unit of wall mirror would be (a) $100 (b) $250 (c) $312.5 (d) $500 (e) $625 Under an activity-based costing (ABC) system that allocates overhead using number of inspections, the inspection costs allocated to one unit of wall mirror would be (a) $100 (b) $250 (c) 8312.5 (d) $500 (e) $625 Which of the following statements about ABC systems is true? (a) ABC systems are most likely to yield benefits for companies in a monopolistic market (b) ABC systems classify some direct costs as indirect costs and some indirect costs as direct costs. (c) ABC systems provide valuable information to managers beyond accurate product costs. (d) ABC systems assume all costs are variable costs. Which of the following is most likely true under the incremental method of allocating common costs: (a) All the parties are interested in being viewed as primary users (b) Each party bears a proportionate share of the total costs in relation to their individual stand-alone costs (c) The first-incremental user bears a higher proportion of the cost in comparison with the primary user (d) The primary user bears the maximum of the total cost