a. direct materials and overbead b. direct labor and overhead. c. direct labor and indirect labor. d. direct materials and direct labor. 87. Conversion costs consist of a direct materials and direct labor E direct labor and overhead. . c. direct materials and overhead. d. direct labor and indirect labor. 88. The cost of goods manufactured decreases which of the following accounts? a. Work in Process Inventory b. Finished Goods Inventory c. Overhead d. Cost of Goods Sold 89. Cost of goods manufactured is equal to a. b. Direct Materials + Direct Labor+ Overhead. Beginning Work in Process Inventory + Total Manufacturing Costs-Ending Work in Process Inventory c. Beginning Work in Process Inventory + Period Costs-Ending Work in Proces Inventory d. Beginning Work in Process Inventory +Product Costs. 90. Which of the following statements is true of fixed and variable costs? a. Both costs are constant when donsidered on a total basis b. Variable costs are constant in total, and fixed costs are constant per unit costs are constant when considered on a per unit basis d. Fixed costs are constant in total, and variable costs are constant per unit. a. Machinery depreciation (calculated with the units-of-production method) b. 91. Which of the following costs is a variable manufacturing cost? c. Factory equipment depreciation (calculated with the straight line method) d. Rent expenses for factory building Telephone charges 92. As production decreases, fixed costs per unit will a. increase. b. decrease. c. remain the same. d. either increase or decrease, depending on the variable cost. Theoretical capacity reduced by normal and expected work stoppages is called a. practical capacity b. normal capacity c. ideal capacity d. excess capacity. 93. 94. In terms of cost behavior, supervisory selaries and direct labor are classified as fixed and variable, respectively a. variable. b. c. fixed d. mixed and fixed, respectively