5. Which of the following statements is true about traceability? Budgeted direct labor hours Actual overhead costs incurred 50,000 S550,000 a. It uses well-specified economic events as inputs, and its processes follow certain rules and conventions b. It is used for investment decisions, stewardship evaluation, activity monitoring, and regulatory measures c. It is the ability to assign a cost directly to a cost object in an economically feasible way by means of a causal relationship d. It is concerned with determining what activities should be performed by managers and assessing how well they are performed If rontal costing is used the amount of overhead applied for the year is 2. SS50,000 b. $300,000 c. S450,000 d $675.000 6. In a traditional cost management system, cost behavior is assumed to be driven only by a ut based cost drivers b. Non unit level cost drivers. c. Activity-based cost drivers. d. None of these 10. Zerox Corporation uses a predetermined rate to apply overhead At the beginning of the year Zeroox estimated its overhead costs at $380,000, direct labor hours at 55,000, and machine hours at 25.000 Actual overhead costs incurred were $350,000, actual direct labor bours were 56,000, and actual machine hours were 25,000 What is Zercox's predetermined overhead rate per machine hour! (Round the answer to two decimal places.) 2. $6.79 b S14 62 c. $14.00 d $15.20 7. When the volume of activity increases within the relevant range, the fixed cost per unit 11. Marinutou Company made the following predictions for 2018: a. Decreases at first, then increases. b. Remains the same c. Decreases d Increases Factory overhead costs Direct labor hours Machine hours $300,000 50,000 hours 100,000 hours 8. Fixed cost per unit is $7 when 25.000 units are proxluced and $5 when 35,000 units are produced What is the total fixed cost when nothing is produced? Job A2 (which was started and completed in June) used 3,000 direct labor hours, 2.000 machine hours, and $57,000 of prime cowls a $130,000 b. 5200,000 c. $12 d. $175,000 If factory overhead is applied based on machine hours, the cost of Job A2 for the Mannitou Company is a $69,000 b. $75,000 c. $63,000 d. 366,000 9. The following information is provided by Zinger Corporation for the year: Actual direct labor hours worked Budgeted overhead 75.000 $150,000