Multiple choice questions

____ 30. The three most common cost behavior classifications are:

a.	variable costs, product costs, and sunk costs
b.	fixed costs, variable costs, and mixed costs
c.	variable costs, period costs, and differential costs
d.	variable costs, sunk costs, and opportunity costs

____ 31. The standard costs and actual costs for direct materials for the manufacture of 2,500 actual units of product are as follows:

Standard Costs
Direct materials (per completed unit)	1.04 kilograms @$8.75
Actual Costs
Direct materials	2,500 kilograms @ $8

The amount of direct materials price variance is:

a.	$1,875 unfavorable
b.	$1,950 favorable
c.	$1,875 favorable
d.	$1,950 unfavorable

____ 32. The production budgets are used to prepare which of the following budgets?

a.	Operating expenses
b.	Direct materials purchases, direct labor cost, factory overhead cost
c.	Sales in dollars
d.	Sales in units

____ 33. Which of the following conditions would cause the break-even point to increase?

a.	Total fixed costs decrease
b.	Unit selling price increases
c.	Unit variable cost decreases
d.	Unit variable cost increases

____ 34. Nield and Sons' static budget for 10,000 units of production includes $50,000 for direct materials, $44,000 for direct labor, utilities of $5,000, and supervisor salaries of $15,000. A flexible budget for 12,000 units of production would show:

a.	the same cost structure in total
b.	direct materials of $60,000, direct labor of $52,800, utilities of $6,000, and supervisor salaries of $18,000
c.	total variable costs of $136,800
d.	direct materials of $60,000, direct labor of $52,800, utilities of $6,000, and supervisor salaries of $15,000

____ 35. 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

____ 36. The following data relate to direct labor costs for the current period:

Standard costs	36,000 hours at $22.50
Actual costs	35,000 hours at $23.00

What is the direct labor time variance?

a.	$17,500 unfavorable
b.	$18,000 unfavorable
c.	$5,000 favorable
d.	$22,500 favorable