1) Davie Corporation is preparing its Manufacturing Overhead Budget for the fourth quarter of the year. The budgeted variable factory overhead rate is $4.00 per direct labor-hour; the budgeted fixed factory overhead is $90,000 per month.

If the budgeted direct labor time for November is 10,000 hours, then the total budgeted manufacturing overhead for November must be:

Select one:

a.

$130,000

b.

$146,000

c.

$70,000

d.

$76,000

2) Which of the following statements is false?

Select one:

In job costing, costs are accumulated by job order.

In process costing, the cost per unit is found by averaging the costs incurred over the units produced.

In process costing, the production costs are assigned to each unit produced.

In job costing, the cost of each unit of a particular job is found by dividing the total cost of the job by the number of units in the job.

When a flexible budget is used a decrease in the actual production level within a range of activity would:

Select one:

a.

Decrease variable cost per unit.

b.

Decrease total variable costs.

c.

Increase total fixed costs.

d.

Increase variable cost per unit.

e.

Decrease fixed cost per unit.