1 The cost of direct materials is classified as a A Neither a Prime Cost or a Conversion Cost B Conversion Costs but not a Prime Cost C Prime cost but not a Conversion Cost D Prime Cost and a Conversion Cost 2 Variable Costs can be expected to A Vary in total in direct proportion to changes in the activity level B Remain constant in total as the activity level changes C Increase on a per unit basis as the activity level increases D Increase on a per unit basis as the activity level decreases 3 Boersma Sales, Inc , a merchandising company, reported sales of 7,100 units in September at a selling price of $682 per unit Cost of goods sold, which is a variable cost, was $317 per unit Variable selling expenses were $44 per unit and variable administrative expenses were $22 per unit The total fixed selling expenses were $157,200 and the total administrative expenses were $338,000 Gross Margin for September was A $2,122,900 B $2,591,500 C $1,627,700 D 4,347,000 4 Slacker Corporation uses a job order costing system with a single plant wide predetermined overhead rate based on machine hours The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $150,000, variable manufacturing overhead of $3 50 per machine hour, and 60,000 machine hours Recently, Job A was completed with total machine hours of 100 hours, direct materials of $645 and direct labor costs of $2,300 The total job costs for Job A is A $3,545 B $3,195 C $3,045 D $3,595 5 In a job order costing system that is based on machine hours, which of the following formulas is correct A Predetermined overhead rate Actual manufacturing overhead Actual machine hours B Predetermined overhead rate Actual manufacturing overhead Estimated machine hours C Predetermined overhead rate Estimated manufacturing overhead Estimated machine hours D Predetermined overhead rate Estimated manufacturing overhead Actual machine hours 6 Purves Corporation is using a predetermined overhead rate that was based on estimated total fixed manufacturing overhead of $121,000 and 10,000 direct labor hours for the period The company incurred actual total fixed manufacturing overhead of $113,000 and 10,900 total direct labor hours during the period The predetermined overhead rate is closest to A $10 37 B $12 10 C $11 10 D $11 30

Question

1  The cost of direct materials is classified as a A  Neither a Prime Cost or a Conversion Cost B  Conversion Costs but not a Prime Cost C  Prime cost but not a Conversion Cost D  Prime Cost and a Conversion Cost 2  Variable Costs can be expected to  A  Vary in total in direct proportion to changes in the activity level B  Remain constant in total as the activity level changes C  Increase on a per unit basis as the activity level increases D  Increase on a per unit basis as the activity level decreases 3  Boersma Sales, Inc , a merchandising company, reported sales of 7,100 units in September at a selling price of $682 per unit  Cost of goods sold, which is a variable cost, was $317 per unit  Variable selling expenses were $44 per unit and variable administrative expenses were $22 per unit  The total fixed selling expenses were $157,200 and the total administrative expenses were $338,000  Gross Margin for September was  A $2,122,900 B  $2,591,500 C  $1,627,700 D  4,347,000 4  Slacker Corporation uses a job order costing system with a single plant wide predetermined overhead rate based on machine hours  The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $150,000, variable manufacturing overhead of $3 50 per machine hour, and 60,000 machine hours  Recently, Job A was completed with total machine hours of 100 hours, direct materials of $645 and direct labor costs of $2,300  The total job costs for Job A is  A  $3,545 B  $3,195 C  $3,045 D  $3,595 5  In a job order costing system that is based on machine hours, which of the following formulas is correct  A  Predetermined overhead rate   Actual manufacturing overhead   Actual machine hours  B  Predetermined overhead rate   Actual manufacturing overhead Estimated machine hours  C  Predetermined overhead rate Estimated manufacturing overhead Estimated machine hours  D  Predetermined overhead rate   Estimated manufacturing overhead   Actual machine hours  6  Purves Corporation is using a predetermined overhead rate that was based on estimated total fixed manufacturing overhead of $121,000 and 10,000 direct labor hours for the period  The company incurred actual total fixed manufacturing overhead of $113,000 and 10,900 total direct labor hours during the period  The predetermined overhead rate is closest to  A $10 37 B  $12 10 C  $11 10 D  $11 30

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1. The cost of direct materials is classified as a A. Neither a Prime Cost or a Conversion Cost B. Conversion Costs but not a

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