In absorption costing, fixed manufacturing overhead is expensed ________.

A) when all the other non-manufacturing fixed costs are expensed

B) when the product is sold

C) at the end of the period in which it is paid

D) when the units are produced

50) Volplex, Inc. produces paper and office supplies and uses the just-in-time inventory system. Currently, the company is using variable costing. Which of the following is true of the effect of costing systems on the financial results of Volplex?

A) Its operating income will be significantly higher if the company uses absorption costing instead of variable costing.

B) Its operating income will be significantly lower if the company uses absorption costing instead of variable costing.

C) Its operating income will vary a little if the company uses absorption costing instead of variable costing.

D) Its operating income will be negative if the company uses absorption costing instead of variable costing.

51) For which of the following decisions is absorption costing most appropriate?

A) decisions related to using the sales mix to maximize profitability

B) decisions related to controlling short-term costs

C) decisions related to setting sales prices in the long run

D) decisions related to increasing contribution margin

61) The direct materials budget is prepared using information from the ________ budget.

A) cash

B) master

C) capital expenditure

D) production

64) The budgeted income statement________.

A) reports cash paid for purchases of direct materials

B) includes amounts from the sales, cost of goods sold, cash, and capital expenditures budgets

C) is accrual-based

D) does not include depreciation expense

68) Which of the following best describes a standard?

A) a sales price, cost, or quantity that is expected under normal conditions

B) costs incurred to produce a product

C) budgeted amount for total product cost

D) actual sales price, cost, or quantity

69) A company is setting its direct materials and direct labor standards for its leading product. Direct material costs from the supplier are $9 per square foot, net of purchase discount. Freight-in amounts to $0.30 per square foot. Basic wages of the assembly line personnel are $19 per hour. Payroll taxes are approximately 23% of wages. How much is the direct labor cost standard per hour? (Round your answer to the nearest cent.)

A) $4.37

B) $19.00

C) $23.37

D) $32.37