1. At Wild Sports Corp., the selling price per unit for lawn mowers is $120, variable cost per unit is $55. Fixed costs are $130,000. Contribution Margin per unit is?
   1. $65
   2. $75
   3. $175
   4. $30
2. Salaries of the maintenance workers, janitors, and security guards will be treated as ____________.
   1. Indirect labor cost
   2. Direct labor
   3. Factory overhead cost
   4. Conversion cost
3. You have a job paying $1,500 per month in your hometown. You have a job offer in a neighboring city that pays $2,000 per month. The commuting cost to the city is $300 per month. What is your differential revenue?
   1. $300
   2. $500
   3. $1,500
   4. $1,800
4. At Sterio Co. Ltd., the selling price per unit for lawn mowers is $120, variable cost per unit is $55. Fixed costs are $130,000. Break-Even Point is?
   1. 1,000 units
   2. 1,083 units
   3. 2,000 units
   4. None of these
5. At Alpha Corp., the selling price per unit for lawn mowers is $120, variable cost per unit is $55. Fixed costs are $130,000. Expected sales are 4,200 units. The Margin of Safety is?
   1. $264,000
   2. $384,000
   3. $143,000
   4. $121,000
6. Which of the following is the assumption of C-V-P Analysis?
   1. Costs can be accurately separated into variable and fixed components.
   2. Fixed costs remain fixed.
   3. Applied only to homogenous products
   4. Variable costs per unit do not change over the relevant range.
7. At Winford Corp., the selling price per unit for lawn mowers is $120, variable cost per unit is $55. Fixed costs are $130,000. Expected sales are 4,200 units. What is profit expected to be?
   1. $264,000
   2. $384,000
   3. $143,000
   4. $121,000
8. If actual overhead is $400,000 for the year but $390,000 was applied to production, we would say that the variance is _______________ overhead.
   1. Under applied
   2. Over applied
   3. Applied
   4. All of the above
9. If actual overhead is $400,000 for the year but $410,000 was applied to production, we would say that the variance is ______________ overhead.
   1. Under applied
   2. Over applied
   3. No under or over applied
   4. All of the above
10. Under _________ costing, all production costs, variable and fixed, are included when determining unit product cost.
    1. Process
    2. Job order
    3. Absorption
    4. Variable