Among the costs Reebok that manufactures jeans and other clothing items incurred during the month of August were the following:

1) $7,000 for coolant used in the sales office air conditioning system. 2) $10,000 for advertising in a national magazine for teenage girls. 3) $5,000 for depreciation on a forklift used to move raw materials in a factory. 4) $3,000 salary paid to a factory receptionist.

The inventoriable costs from the above list total:

Group of answer choices

A. $5,000

B. $17,000

C. $8,000

D. $15,000

QUESTION 2:

The following six months of data were collected on the number of machine hours operated and utility costs incurred in a factory:

Month July August September October November December

Machine Hours 4,975 5,130 3,100 3,170 3,755 4,320

Utility Costs $26,860 26,400 21,500 20,140 24,780 25,840

Which of the following would be the correct set of high and low months to be used by the high-low method?

Group of answer choices

A. High: August, Low: October

B. High: July, Low: September

C. High: August, Low: September

D. High: July, Low: October

Question 3.

Which of the following is the cost assignment process under normal costing?

Group of answer choices

A. Actual direct materials, actual direct labor and actual overhead costs are assigned to products.

B. Actual direct materials and actual direct labor costs are assigned to products, but overhead costs are applied to products using a predetermined rate.

C. Actual direct labor cost is assigned to products, but direct materials and overhead costs are applied to products using predetermined rates.

D. Actual direct materials cost is assigned to products, but direct labor and overhead costs are applied to products using predetermined rates.