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Activity-based costingaccumulates overhead in one cost pool then assigns the overhead to products and services by means of a cost driver.allocates overhead to multiple activity cost pools and it then assigns the activity cost pools to products and services by means of cost drivers.assigns activity cost pools to products and services then allocates overhead back to the activity cost pools.allocates overhead directly to products and services based on activity levels.The break-even point is wheretotal sales equal total variable costs.contribution margin equals total fixed costs.total sales equal total fixed costs.total variable costs equal total fixed costs.When a company assigns the costs of direct materials direct labor and both variable and fixed manufacturing overhead to products that company is usingvariable costing.product costing.operations costing.absorption costingSeasons Manufacturing manufactures a product with a unit variable cost of $100 and a unit sales price of $176. Fixed manufacturing costs were $480000 when 10000 units were produced and sold. The company has a one-time opportunity to sell an additional 1000 units at $140 each in a foreign market which would not affect its present sales. If the company has sufficient capacity to produce the additional units acceptance of the special order would affect net income as follows:Income would increase by $40000.Income would decrease by $8000.Income would increase by $8000.Income would increase by $140000.Carter Inc. can make 100 units of a necessary component part with the following costs:Direct Materials$120000Direct Labor20000Variable Overhead60000Fixed Overhead40000 If Carter can purchase the component externally for $220000 and only $10000 of the fixed costs can be avoided what is the correct make-or-buy decision?Make and save $30000Buy and save $10000Buy and save $30000Make and save $1000A company has a process that results in 15000 pounds of Product A that can be sold for $16 per pound. An alternative would be to process Product A further at a cost of $200000 and then sell it for $28 per pound. Should management sell Product A now or should Product A be processed further and then sold? What is the effect of the action?Sell now the company will be better off by $200000.Sell now the company will be better off by $20000.Process further the company will be better off by $180000.Process further the company will be better off by $20000
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