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THE FOL TOWDGG INFORMATON APPL IES TOO Cunandy produces six products. Under their traditional cost system ush costs $168.00 per unit. An analysis of the actividies and their costs revenled that threc cos $17B,00 per anit. 1. The total amount of indirect costs axsigned to product $R6 using the traditional method is the total amount assigned uning ABC. a. more thai b. less than c. identical to: d. None of thete answers re correct. 2. Given this change in the cost: a. SR6 will now command a higher sales price b. SR6 has benefited from the new system c. 5R6 is definifely more accurately costed d. The costing results for SR6 under the new systein depend on the adequacy and quality of the estimated cost drivers and costs used by the system Cuall and Laree. Central costs could be allocated to the K. tw the Small Department would be: a. $50,000 b. $75,000 c. $210,000 d. $250,000 4. If total advertising expense of $300,000 is allocated on the basis of sales, the amount allocated to the Large Department would be: a. $225,000 b. $90,000 c. $250,000 d. $50,000 5. If total payroll processing costs of $96,000 are allocated on the basis of number of employees, the amount allocated to the Small Department would be: a. $67,200 b. $24,000 c. $16,000 d. $28,000

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