1. Maytag is an example of a: (a) manufacturer; (b) merchandiser; (c) service company; (d) none of the above 2. Federal Express is an example of a: (a) manufacturer; (b) merchandiser, (c) service company, (d) none of the above 3. Cost of goods sold consists of the following costs: (a) direct materials only; (b) direct materials and direct labour only; (c) direct materials, direct labour, and variable overhead; (d) direct materials, direct labour, variable overhead, and fixed overhead 4. When absorption costing is used: (a) all manufacturing costs are viewed as product costs; (b) only variable manufacturing costs are viewed as product costs; (c) manufacturing and nonmanufacturing costs are viewed as product costs; (d) only direct materials and direct labour are viewed as product costs Use the following information to answer Questions 5 through 8: The Flowers Company costs at 50,000 units of production are: Direct materials............ Direct labour Overhead... Selling and administrative costs... Sales for the year totalled $700,000. $75,000 150,000 140,000 90,000 5. Total production costs equal: (a) $225,000; (b) $365,000; (c) $455,000; (d) $230,000; (e) $90,000 6. Total nonproduction costs equal: (a) $225,000; (b) $365,000; (c) $455,000; (d) $230,000; (e) $90,000 7. Gross margin is: (a) $610,000; (b) $475,000; (c) $470,000; (d) $335,000; (e) $245,000 8. The unit product cost is: (a) $4.50; (b) $7.30; (c) $9.10; (d) $4.60; (e) $1.80 9. The number of setups is a: (a) production or unit-level driver; (b) nonunit-level driver 10. Direct labour hours is a: (a) production or unit-level driver; (b) nonunit-level driver 11. Number of material moves is a: (a) production or unit-level driver; (b) nonunit-level driver 12. Machine hours is a: (a) production or unit-level driver; (b) nonunit-level driver