29. If Blitzer Enterprises uses the three activity cost pools to allocate overhe

Question

29. If Blitzer Enterprises uses the three activity cost pools to allocate overhead costs, what are the activity-cost driver rates for the supervision of direct labor, machine maintenance, and facility rent, respectively?
A) $1.20 per direct labor hour, $0.50 per machine hour, $3.60 per sq ft
B) $2.50 per direct labor hour, $0.50 per machine hour, $1.00 per sq ft
C) $0.80 per direct labor hour, $0.10 per machine hour, $2.40 per sq ft
D) $0.60 per direct labor hour, $0.40 per machine hour, $2.60 per sq ft

30. Activity-based management (ABM) includes decisions about all of the following EXCEPT:
A) pricing and product mix.
B) smoothing costs.
C) reducing costs.
D) improving efficiency of activities.

Explanation / Answer

C) $0.80 per direct labor hour, $0.10 per machine hour, $2.40 per sq ft A) pricing and product mix.

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