1.Raw material inventory would be found on the balance sheet of a ---------------firm: a. Merchandising b. Manufacturing c. Both A and B d. Neither A nor B

2.An example of a variable cost would be: a. Direct labor b. Depreciation c. Interest d. None of the above

3.An example of a variable cost would be: a. Direct materials b. Direct labor c. Both A and B d. Neither A nor B

4.As a production level increases, variable cost per unit: a. Increases b. Decreases c. Remains the same

5.As production levels increase the variable cost per unit: a. Increases d. decreases c. stays the same d. none of the above

6.If fixed cost per unit is steady, the production level is: a. Increasing b. Decreasing c. Steady

7.If applied overhead is $300,000 and is $30,000 under applied, actual overhead is: a. $270,000 b. $300,000 c. $330,000 d. None of the above

8.Actual overhead is $200,000. If applied overhead is $30,000 over applied, what is the applied overhead? A. $170,000 b. $200,000 c.$230,000 d. None of the above

9.Direct labor is a: a. Prime cost b. Conversion cost c. Both A and B d. Neither A nor B

10.There are--------------physical units if there are 800 equivalent units that are physical units that are 10% complete: a. 7000 b. 8000 c. 9000 d. None of the above