1 Which of the following statements is true? A. Total variable costs remain constant as level of activity increases (in the relevant range). X B. Total fixed costs increase as the level of activity increases (in the relevant range). C. It is impossible to determine whether variable and fixed costs will increase or decrease based on the level of activity (within the relevant range).X D. Per unit variable cost increases as the level of activity increases (within the relevant range). E. Per unit fixed cost decreases as the level of activity increases (within the relevant range). 2 Tallahassee Company is highly automated and uses a computer to control manufacturing operations. Tallahassee uses a job-order costing system and applies manufacturing overhead (MOH) cost to products on the basis of computer hours. The estimates below were used in preparing the predetermined OH rate at the beginning of the year: Fixed MOH cost $ 1,275,000 Variable MOH per computer hour Computer hours $ 3.00 85,000 hrs During the year, a severe economic recession resulted in the cutting back production and the building of inventory in the company's warehouse. The company's cost records revealed the following actual cost and operating data for the year: Computer-hours Manufacturing overhead cost Balances at year-end: Work-in-process Inventory Finished Goods Inventory Costs of Good Sold What is the predetermined overhead rate for the year? A. B. C. AUDE $15.00 per hour $21.25 per hour $22.50 per hour $18.00 per hour $15.88 per hour 60,000 $1,350,000 $160,000 $1,040,000 $2,800,000 POHR Estimated moH Estimated Base 85,00 Applied = POHRX Actual