Answer the following questions using the information below: Chess ...

[Themember4]

Answer the following questions using the information below: 

Chess Woods Limited produces two products: wooden chess pieces and wooden inlaid chess boards. Under their traditional cost system using one cost driver (direct manufacturing labor hours), the cost of a set of wooden chess pieces is $325.00. An analysis of the activities and their costs revealed that three cost drivers would be used under a new ABC system. These cost drivers would be equipment usage, storage area for the material, and type of woods used. The new cost of a set of chess pieces was determined to be $298.00 per set.


The reduction in cost per unit of wooden chess pieces under ABC system is due to difference in allocation of ________.
◦ labor costs
◦ prime costs
◦ indirect costs
◦ material costs

[reversalruiz]

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[Themember4]

Thanks for the timely response, appreciate it

[at]

YES! Correct, THANKS for helping me on my review