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1. The cost of wages for assembly workers is classified as: Prime Cost A No B) Yes No D) Yes A. Option A B. Option

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1. The cost of wages for assembly workers is classified as: Prime Cost A No B) Yes No D) Yes A. Option A B. Option B C. Option C D. Option D Product Cost No No Yes Yes 2. The following data pertains to activity and maintenance costs for two recent years: Activity in Units Maintenance Costs Year 1 800 $25,000 Year 2 400 $20,000 Using the high-low method, the cost formula for maintenance would be: A. $12.50 per unit B. $50.00 per unit C. $5,000 plus $25.00 per unit D. $15,000 plus $12.50 per unit 3. ABC, Inc., a merchandising company, reported sales of 10,000 units in June at a selling price of $10 per unit. Cost of goods sold, was $3 per unit. Variable selling expenses were $2 per unit and variable administrative expenses were $1 per unit. The total fixed selling expenses were $12,000 and the total administrative expenses were $18,000. The contribution margin for June was: A. $40,000 B. $50,000 C. $10,000 D. $100,000

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