Which of the following cost items should be classified as a prevention cost on a cost of quality report? A. Warranty expenses on defective products. B. Technical support provided to suppliers C. Supervision of quality inspections C D. Net cost of spoiled units 14. When the products are shipped to customers, the cost of manufacturing those products becomes Cost of Goods Sold (COGS) shown on the company’s balance sheet. a True b. False A 15. Research and development would most likely be classified as which type of activity? Machine set-up would most likely be classified as which type of activity? A. facility-level activity; unit-level activity B. batch-level activity; product-level activity C. product-level activity; batch-level activity B D. facility-level activity; batch-level activity 16. The following information was gathered for the Buckley Corporation for the most recent year. Manufacturing overhead is allocated using direct labor hours. Estimated direct labor hours 54,000 Actual direct labor hours 57,000 Estimated manufacturing overhead costs $729,000 Actual manufacturing overhead costs $685,000 What is the amount of overallocated or underallocated overhead for the year? A. $44,000 overallocated B. $44,000 underallocated C. $84,500 overallocated C D. $84,500 underallo