Prime cost cost dn 1) The costs of direct labor are clasified as: omu/ Conversion cost Manufacturing No Yes B) c) D) Yes No silary paid to the president of a company would be classified on the income statemenr as a(n): A) administrative expense. B) direct labor cost. C) manufacturing overhead cost. D) selling expense. 13) The cost of direct materials is classified as a: Conversion cost A) B) C) D) Yes No Yes Prime cost No No Yes Yes 14) Factory overhead is typically a(n)s A) mixed cost. B) fixed cost. C) variable cost. D) irrelevant cost. 15) Abburi Company's manufacturing overhead is 60% of its total conversion costs. If direct labor is $52,000 and if direct materials are $28,000, the manufacturing overhead i s: A) $34,667 B) $78,000 C) $42,000 D) $120,000 16) A sunk cost is: A) a cost that is planned to be incurred in the near future B) irrelevant for decision making. C) a cost connected with drilling for oil in the ground. bo D) affected by changes in the level of activity. Which costs will change with an increase in activity within the relevant range? A) B) C) D) Unit fixed cost and total fixed cost Unit variable cost and total variable cost Unit fixed cost and total variable cost Unit fixed cost and unit variable cost