SE_Ch07 - SAMPLE EXAM CHAPTER 7*SEE SOLUTION ON THE LAST...

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SAMPLE EXAM: CHAPTER 7 ***SEE SOLUTION ON THE LAST PAGE*** 1. Which of the following statements is true? a. Activity based costing requires the accountant to identify the appropriate cost drivers for each activity or cost pool. b. Activity based costing is used only in manufacturing companies. c. In activity based costing, one predetermined overhead rate is used to apply overhead costs to production. d. All of the above are true. 2. Which of the following is not a benefit of activity-based costing? 3. Kraska Corporation has provided the following data from its activity-based costing system: According to the activity-based costing system, the profit for product O11W is:
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USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT 2 QUESTIONS A company incurs $1,200,000 of overhead each year in three departments, Processing, Packaging, and Testing and requires 50,000 direct labor hours costing $1,000,000 in its manufacturing process. Also, the company performs 800 processing transactions,
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