1. When production for TV's R Us exceeds salex, fixed manufacturing overhead costs: are released from inventory under absorption costing; b) are defined in mymtory umder absorption costing; c) are released from inventory under variable costing: d) are defined in mventory umdur variable costing. 2. Nothing But TV's provides photocopying services and has an activity-based costing system with three activity cost pools - making photocopies, serving customers, and setting up machines The activily rates are $.02 per photocopy, $2.15 per cuglomer, and $.75 per machme-sclup. If a customer requirex set-ups on two different machines and makes 200 copies m lolal, how much cost would be assigned to the job for the customer by the activity-based costing system? a) $1.00; b) $2.15: c) $1.50; d) $7.65. 3. TV's 4 All had opening inventory of 10,000 units. Soles in the current period were 50.000 units and produclion wax 45.000 umts. Operating income under absorpliom costing will likely a) higher than variable costing operating income: b) lower than variable costing operating income; c) the same as variable cosling operating income: d) cannot be determined based on the information provided. 3. Last year, Megabucks produced 10,000 units and sold 9.000 units. Fixed manufacturing overhead costs were $20,000, and variable manufacturing overhead costs were 33 per unit. There was no opening inventory. For the year, one would expect operating income under the absorption costing method to be: a $2.000 more than operating income under the variable cosling method: b) $5.000 more than operating income under the variable cerimg method: 5) $2.000 less than operating income under the variable cesling method: d) $5.000 less than operating income under the variable cosing method. 5. What is the costing method that Tinsel Town Television could use most easily with break- sven analysis and other cost-volume-prolit techniques? a) Variable costing. b) Absorption cosling. 5) Activity based costing. d) Job order costing