2. Answer the following multiple choice questions:

A) Cyber Lighting manufactures different models of LED ring lights. The company produced 21,000 units of one model, the UltraXZ, in 2021. Total direct materials costs related to production of UltraXZs were $425,000. Production employees spent 4,400 direct labor hours on the UltraXZ, and total direct labor costs were $97,200. Cyber allocates overhead based on direct labor hours, and the 2021 predetermined overhead rate was $3.50 per direct labor hour. What was the 2021 unit cost for the UltraXZ?

a. $40.86

b. $31.23

c. $87.14

d. $25.60

B) True or False: If a Hershey production plant produces eight different types of candy and the plant manager receives a salary of $150,000 per year, the plant manager's salary is an example of an INDIRECT cost.

C) In 2020, NoSlip Mask Company produced 410,000 masks and incurred total Direct Material costs of $307,500. NoSlip expects materials costs to increase by 8% in 2021 and expects to produce 550,000 masks in 2021. What is NoSlip's total budgeted Direct Materials cost for 2021?

a. $340,000

b. $445,500

c. $412,500

d. $332,100

D) True or False: If a Hershey production plant produces eight different types of candy and the plant manager receives a salary of $150,000 per year, the plant manager's salary is an example of a VARIABLE cost.

E) True or False: A flexible budget shows how predicted costs will vary for different levels of production.