19.

Determination of the optimum short-term product mix should focus on:

A) Fully absorbed costs.

B) Production (that is, resource) and demand constraints.

21.

You are planning on keeping your car but want to know if taking the public transit bus to school would be cheaper than driving, which of the following are NOT considered relevant costs in your evaluation?

A) The cost of bus fare.

B) The cost of parking at the schools parking meter.

C) Monthly cost of car insurance.

D) Monthly cost of fuel for the car.

E) All of the above are relevant to your decision.

20.

The following information for the past year is available from Thinnews Co., a company that uses machine hours to apply standard factory overhead cost to outputs:

Actual total factory overhead cost incurred	$	35,000
Actual fixed overhead cost incurred	$	14,000
Budgeted fixed overhead cost	$	10,000
Actual machine hours		8,000
Standard machine hours allowed for the units manufactured		4,900
Denominator volumemachine hours		8,500
Standard variable overhead rate per machine hour	$	3

The variable overhead spending variance, to the nearest whole dollar, is:

A) $2,600 unfavorable.

B) $3,000 favorable.

C) $3,400 unfavorable.

D) $3,500 favorable.

E) $4,100 favorable.

C) Sales-mix costs.

D) Revenue forecasts for each of the firms products or services.

E) The relative sales values of the firms outputs (goods or services).