16 Which of the following statement is true? A. Total variable costs remain constant as the level of activity increases (in the relevant range). 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 in the relevant range. D. Variable cost per unit increases as the level of activity increases (in the relevant range) E. Fixed cost per unit decreases as the level of activity increases (in the relevant range) Use the information below to answer the following two questions. Joyce Company uses a job-order costing system and applies manufacturing overhead (MOH) with traditional method based on direct labor cost (DLC). At the beginning of December, the following information was estimated: Estimated MOH$318,750 Estimated DLC $425,000 Partial activity posted during the month of December is shown in the T-accounts below: 17 Cost of Goods Manufactured (COGM) for the month of December was: A. $874,550 B. $76,550 C. $877,300 D. $871,500 E. None of the above Retained earnings at the end of January is: E. None of the above. Use the information below to answer the following two questions: Ginseng Inc. uses a normal cost system to account for jobs it produces and closes out any over-or under-applied manufacturing overhead directly to Cost of Goods Sold at the end of each quarter. Beginning balances from the Balance Sheet on January 1 are shown in the table below. The table uses the following abbreviations: To answer the following two questions, enter the numbers relevant for each calculation into the table below using positive numbers to designate increases to an account balance and negative numbers to designate decreases. 19 The ending balance of the cash account is: A. \$ 385 B. $424 C. $400 D. $450 E. $439 18 Joyce company has a policy to close any under- or over-applied overhead costs to cost of goods sold at the end of the year. Suppose it failed to do so, what would be the impact of this error on the company's net operating income? 15 Steinbeck Company provided the following data for the year ended September 30. Figures are all in $1,000. Steinbeck closes any under- or over-applied overhead costs to cost of goods sold at the end of the year