Answer the Following Questions Using the Information Below

question 111

Multiple Choice

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 ________.

• A) labor costs
• B) prime costs
• C) indirect costs
• D) material costs

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Definitions:

Castrati

Male singers who were castrated before puberty to preserve their high-pitched vocal range; prominent in 17th and 18th-century European classical music.

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A Native American tribe that is part of the Sioux group of tribes, known for their rich culture and history on the Great Plains of North America.

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Individuals whose gender identity or gender expression differs from the sex they were assigned at birth.

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Supernatural entities believed to possess qualities or attributes typically associated with men or women, present in various cultural and religious beliefs.