Last month, when 10,000 units of a product manufactured, the cost per unit was $60. At level of activity, variable costs were 50% of unit costs. If 10,500 units are manufactured month and cost behaviour patterns remain unchanged, how will costs be affected? a. Total cost per unit will decrease. b. Fixed costs will increase in total. c. Total variable costs will remain unchanged. d. Variable cost per unit will increase. During the month of June, Reardon Company incurs $17,000 of direct labour and $8,500 of manufacturing overhead, and purchases $15,000 of raw materials. Between the beginning and the end of the month, the raw-materials inventory increases by $2,000, the finished goods inventory increases by $1,500, and the work-in-process inventory decreases by $3,000. What is the cost of goods manufactured? a. $38,500 b. $43,500 c. $40,500 d. $41,500 During the month of May, Bennett Manufacturing Company purchased $43,000 of raw materials. The manufacturing overhead totals $27,000 and the total manufacturing costs are $106,000. Assuming a beginning inventory of raw materials of $8,000 and an ending inventory of raw materials of $6,000, what must be the total cost of direct materials used? a. $34,000 b. $38,000 c. $36,000 d. $45,000 Upon which of the following does managerial accounting place considerable weight? a. Generally accepted accounting principles. b. The financial history of the entity. c. Ensuring that all transactions are properly recorded. d. Detailed segment reports about departments, products, and customers. For a manufacturing company, which of the following is an example of a period cost rather than a product cost? a. Depreciation of factory equipment b. Insurance on factory equipment c. Wages of accountants d. Wages of machine operators