Question: 1. Activity-based costing allocates selling and administrative expenses
a. based on how each product consumes activities.
b. in accordance with GAAP.
c. based on sales volume in dollars.
d. based on sales volume in units.
2. Under activity-based costing, selling and administrative expenses are
a. allocated to all products at the same rate.
b. treated as period expenses.
c. allocated to the top-selling products only.
d. allocated to products based on how each product consumes activities.
3. Selling and administrative expenses include all of the following except:
a. Customer return processing.
b. Factory overhead.
c. Post-sale technical support.
d. Shipping document preparation.
4. Northside Clinic uses activity-based costing to determine the cost of servicing patients. There are three activity pools: patient admissions ($50 per patient), laboratory services ($150 per diagnosis), and x-ray imaging ($400 per image). Daisy Satar went to the clinic and had blood drawn twice for separate diagnoses and had three separate images read and interpreted by a doctor. What is the total activity-based cost of Satar's visit?