9. Which of the following is not an underlying assumption of the cost-volume-profit graph?

(A) Expenses are categorized into fixed and variable

(B) Revenues and expenses are linear over the relevant range

(C) Efficiency and productivity will be unchanged

(D) Sales mix will not be constant

10. If total fixed costs decreases while the sale price per unit and the variable costs per unit remain constant, the:

(A) contribution margin increases

(B) contribution margin decreases

(C) breakeven point increases

(D) breakeven point decreases

11. A business always absorbs its overheads on labour hours. In the 8th period 18,000 hours were worked, actual overheads were $279,000 and there was$36,000 over-absorption. The overhead absorption rate per hour was:

(A) $15.50

(B) $17.50

(C) $18.00

(D) $13.50

Questions 12 & 13 are based on the following information. The following cost data relates to Bruno Company for the year 2008:

Estimated manufacturing overhead costs $240,000

Estimated direct labour cost 300,000

Estimated direct labour hours 30,000

Actual direct labour cost 315,000

Actual direct labour hours 33,000

Allocation base: Direct labour cost

Other expenses (Actual):

Factory depreciation on equipment $65,300

Factory rent 51,000

Factory utilities 28,900

Factory property taxes 26,000

Indirect labour 23,800

Indirect materials 32,000

Sales commissions 52,500

12. Manufacturing overhead allocated for 2008 is:

(A) $252,000

(B) $450,450

(C) $210,000

(D) $220,500