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17. Ordering materials, setting up machines, assembling products, and inspecting products...

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Accounting

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17. Ordering materials, setting up machines, assembling products, and inspecting products are examples of A) direct labor costs. B) nonmanufacturing activities, C) overhead cost pools, D) cost drivers. 18. Estimated costs for activity cost pools and other item(s) are as follows: Machining $500,000 Assembling 200,000 Advertising 450,000 Inspecting and testing 175,000 Total estimated overhead is A) $1,325,000. B) $1,150,000. C) $700,000. D) $875,000. 19. An activity-based overhead rate is computed as follows: A) actual overhead divided by estimated use of cost drivers. B) estimated overhend divided by estimated use of cost drivers. C) estimated overhead divided by actual use of cost drivers. D) actual overhead divided by actual use of cost drivers. 10. Companies that switch to ABC often find they have A) been sacrificing profitability by underpricing some products. B) been overpricing some products, C) possibly losing market share to competitors. D) all of the above

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