Chapter 2 1. The installation of seats by an airplane manufacturer in a commercial airplane. What is an appropriate cost driver for the labor resources used for this activity? A) number of service center hours B) number of labor hours used for installation C) number of engineering hours D) number of mechanic hours 2. Which of the following costs is a fixed cost? A) labor wages of workers who mix dairy ingredients to make ice cream B) cost of dairy ingredients used to produce ice cream C) fuel used by delivery trucks D) factory supervisory salaries 3. Hot Company, a producer of salsa, has the following information: Selling price per unit $8.00 Variable cost per unit $3.00 Total fixed costs $90,000.00 The contribution margin per unit is A) $8.00 B) $3.00 C) $5.00 D) $2.00