Question 1
When using an activity-based costing system, which of the following is the formula for allocating costs to products or services?
◦ Predetermined manufacturing overhead rate × planned activity
◦ Predetermined manufacturing overhead rate × actual activity
◦ Activity rate × amount in activity pool
◦ Activity rate × activity driver consumption
Question 2
When using an activity-based costing system, which of the following is the formula for allocating costs to products or services?
◦ Activity rate times activity driver consumption
◦ Activity cost pool resources divided by activity driver
◦ Activity rate divided by activity driver consumption
◦ Activity cost pool resources times activity driver