1. Which of the following indicates an incorrect cost behavior?

a. Wages of factory workers: Variable

b. Straight-line depreciation on welding machine: Fixed

c. Salary of quality control inspector: Variable

d. Cost of wax to make candles: Variable

2. Which of the following indicates an incorrect cost classification?

a. Wages of factory workers: Direct Labor

b. Straight-line depreciation on welding machine: Direct Labor

c. Salary of quality control inspector: Overhead

d. Cost of wax to make candles: Direct Material

3. Wayside Machine Tool Company purchased a $600,000 welding machine to use in production of large machine tools and robots. The welding machine was expected to have a life of 10 years and a salvage value at time of disposition of $60,000. The company uses straight-line depreciation. During its first operating year, the machine produced 600 product units, of which 480 were sold. The expired portion of the machine cost is

a. $600,000

b. $60,000

c. $54,000

d. $43,200