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  1. 7.When using machine hours for allocating manufacturing overhead (instead of activity-based costing), a low-volume item requiring a significant amount of special handling will be assigned too __________ manufacturing overhead.Little Much
  2. 8.The cost to set up production equipment is best allocated directly to products via machine hours.True False
  3. 9.Setup cost is an example of a batch-level cost.True False
  4. 10.Manufacturing costs are often organized in the general ledger by function and department. When applying activity-based costing, these manufacturing costs will be sorted by activities.True False
  5. 11.In activity-based costing, the manufacturing overhead cost per unit will depend partially on the number of units in a batch.True False
  6. 12.In ABC the assumption is that __________ use resources or cause costs.Activities Products
  7. 13.If products are uniform and customers are similar in their demands, activity-based costing may not offer a significant advantage over machine hours when assigning overhead.True False
  8. 14.A product with a high gross profit could be an unprofitable product.True False
  9. 15.Activity-based costing can be used to allocate SG&A expenses in order to assist management with pricing and other marketing decisions.True False

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