____ 36. The following data relate to direct labor costs for the current period:

Standard costs	36,000 hours at $22.50
Actual costs	35,000 hours at $23.00

What is the direct labor time variance?

a.	$17,500 unfavorable
b.	$18,000 unfavorable
c.	$5,000 favorable
d.	$22,500 favorable

____ 37. Which of the following costs is a mixed cost?

a.	Salary of a factory supervisor
b.	Electricity costs of $2 per kilowatt-hour
c.	Rental costs of $5,000 per month plus $.30 per machine hour of use
d.	Straight-line depreciation on factory equipment

____ 38. Assume that QMW Co. sold 8,000 units of Product A and 2,000 units of Product B during the past year. The unit contribution margins for Products A and B are $20 and $45 respectively. QMW has fixed costs of $350,000. The break-even point in units is:

a.	14,000 units
b.	25,278 units
c.	8,000 units
d.	10,769 units

____ 39. Production estimates for July are as follows:

Estimated inventory (units), July 1	8,500
Desired inventory (units), July 31	10,500
Expected sales volume (units), July	76,000

For each unit produced, the direct materials requirements are as follows:

Direct material A ($5 per lb.)	3 lbs.
Direct material B ($18 per lb.)	1/2 lb.

The total direct materials purchases of materials A and B (assuming no beginning or ending material inventory) required for July production is:

a.	$1,080,000 for A; $648,000 for B
b.	$1,080,000 for A; $1,296,000 for B
c.	$1,170,000 for A; $702,000 for B
d.	$1,125,000 for A; $675,000 for B

____ 40. The difference between the current sales revenue and the sales at the break-even point is called the:

a.	contribution margin
b.	margin of safety
c.	price factor
d.	operating leverage