44. The allocation base that would be most likely to be the best for allocating the indirect costs of the distribution function is a. Number of shipments b. Number of sales person c. Direct labor hours d. Machine hours 45. Of the following, which is the best reason for using the activity-based costing? a. To assign indirect overhead costs to different overhead pools b. To better assign overhead costs to products c. To keep better track of overhead costs d. To more accurately assign overhead costs to cost pool so that these costs are better controlled 37. M. Munda Company produces and sells rattan baskets. The number of units produced and the corresponding total production costs for six month, which are representatives for the vear, are as follows: The monthy prouuciun cusl call ve expresseu ds a. Y=a+bx b. Y=b+ax c. Y=ax+b d. x=a+by 38. Using the least-square method, the variable production cost per unit is a. P5 b. P10 c. P0.27 d. P3.74 39. Using the least-square method, the monthly fixed production cost is a. P1, 500 b. P18,000 c. P4,350 d. P52,200 40. If the high-low points method is used, the results when compared to those under the method of least squares are Variable cost per unit Iotal fixed costs a. Equal Equal b. Higher by P1.26 c. Lower by P 1.26 Lower by P2,850 d. Higher by P5 Higher by P2,850 Lower by P1, 500 41. Which of the following costs is not a product? a. Wages paid to workers for rework on defective products b. Wages paid to truck loaders who load finished goods onto outgoing delivery trucks c. Fringe benefits paid to factory workers d. Wages paid to workers to idle time due to machine breakdown in a production department 42. ABC differs from traditional product costing because it uses multiple allocation bases and therefore, allocates costs fisuch as overhead costs) more accurately. This normally results in a. Equalizing set up costs for all product lines b. Lower set up costs being charged to low volume products c. Decreased units costs for low-volume products than is reported by traditional product costing systems d. Substantially greater unit costs for low-volume products than is reported by traditional product costing system. 43. The allocation base that would most likely be the best for allocating the indirect costs of marketing function is a. Number of shipments b. Number of sales person c. Number of customer phone calls