QUESTION 25

A cost that differs between the decision options and will be incurred in the future is a:

	a.	Variable cost.
	b.	Relevant cost.
	c.	Marginal cost.
	d.	Controllable cost.
	e.	Discretionary cost.

QUESTION 26

The total cost of direct materials, direct labor, and factory overhead transferred from the Work-In-Process Inventory account to the Finished Goods Inventory account during an accounting period is:

	a.	Normal cost of goods sold.
	b.	Adjusted cost of goods sold.
	c.	Total manufacturing cost.
	d.	Cost of goods manufactured.
	e.	Actual cost of goods sold.

QUESTION 27

C.M. Fly, owner of Falcon Aircraft Co., is preparing the accounting record for the year just ended. During the year, he had projected that the company would produce 300 Falcon Aircraft for its clients with a factory overhead cost of $150,000,000. However, business was better than expected and the company was able to produce 400 aircraft at factory overhead cost of $175,000,000. What is the amount per unit that Falcon Aircraft has over or underapplied factory overhead?

	a.	$62,500 overapplied.
	b.	$62,500 underapplied.
	c.	$125,000 overapplied.
	d.	$125,000 underapplied.
	e.	None of the above.