Consider the information given on two products and their activity usage: Laser Printer Inkjet Printer Units produced 1,000 4,000 Setup hours XXXXXXXXXX Inspection hours XXXXXXXXXX Machine hours 200...

Laser Printer Inkjet Printer

Units produced 1,000 4,000

Setup hours 800 400

Inspection hours 500 500

Machine hours 200 1,000

1. Refer to the information above. The consumption ratios for the inspection activity for each product are

a. 0.167; 0.833.

b. 0.333; 0.667.

c. 0.500; 0.500.

d. 0.667; 0.333.

e. None of these.

2. Refer to the information above. Suppose that machine hours are used to assign all overhead costs to the two products. Select the best answer from the following:

a. Laser printers are overcosted, and inkjet printers are undercosted.

b. Laser printers and inkjet printers are accurately costed.

c. Laser printers are undercosted, and inkjet printers are overcosted.

d. Using inspection hours to assign overhead costs is the most accurate approach.

e. None of these.