13-14

QUESTION 13 At Overland Company, maintenance cost is exclusively a variable cost that varies directly with machine-hours. The performance report for July showed that actual maintenance costs totaled $9,800 and that the associated spending variance was $200 unfavorable. If 8,000 machine-hours were actually worked during July, the budgeted maintenance cost per machine-hour was O $1.225 O $1.20 O $1.275 O $1.25 QUESTION 14 Utilities incurred in the factory would be classified as O direct labor O direct materials O overhead O none of the above