Multiple Choice Circle the letter of the choice that best completes the statement or answers the question. Transfer answers to a green scantron. 1. Which of the following activity bases would be the most appropriate for food costs of a hospital? a. Number of cooks scheduled to work b. Number of x-rays taken C) Number of patients who stay in the hospital d. Number of scheduled surgeries 2. Costs that vary in total in direct proportion to changes in an activity level are called a fixed costs b. sunk costs c. variable costs d. differential costs 3. Which of the following is an example of a cost that varies in total as the number of units produced changes? a. Salary of a production supervisor c. d. Direct materials cost Property taxes on factory buildings Straight-line depreciation on factory equipment Which of the following costs is a mixed cost? a. b. 4. Salary of a factory supervisor Electricity costs of $3 per kilowatt-hour Rental costs of $10,000 per month plus S.30 per machine hour of use Straight-line depreciation on factory equipment d. 5. Manley Co. manufactures office furniture. During the most productive month of the year, 4,500 desks were manufactured at a total cost of $86,625. In its slowest month, the company made 1,800 desks at a cost of $49,500. Using the high-low method of cost estimation, total fixed costs are: a. $61,875 $33,875 c. $24,750 d. cannot be determined from the data given