QUESTION 9 Figure 3.3. Okafor Company manufactures skis. The management accountant wants to calculate the fixed and variable costs associated with the leasing of machinery Data for the past four months were collected Month April May June July Lease cos! $21,000 16,500 19.000 22 230 Machine hours 550 420 510 570 Refer to Figure 3-3. Using the high-low method calculate the variable rate for the lease cost O $38.18 538 20 561.50 537 25 QU STION 10 Cost behavior analysis focuses on how costs react to changes in profit how costs change over time how costs react to changes in activity level both a and QUESTION 11 Talcum, Inc had materials inventory at July 1 of $12,000. The materials inventory at July 31 was $15,000 and the cost of direct materials used in production was $20,000. What was the cost of materials purchased during the month? $23.000 $17.000 O $35,000 O $20,000 $225,000 397.500 450,000 QUESTION 12 Selected data concerning the past year's operations of the Burner Corporation are as follows: Selling and administrative expenses Direct materials used Direct labor Inventarios Dec 120X9 Direct materials $36.000 Work in process 75,000 Finished goods 69.000 The cost of direct materials purchased is O $397,500 $403,500 $367.500 $405,000 Dec 31, 20X9 $42,000 84.000 57.000 QUESTION 13 Product costs are inventoriable costs. are manufacturing costs. include direct materials, direct labor, and overhead. are all of these QUESTION 14 Prime cost is indirect materials cost and indirect labor cost direct materials cost and direct labor cost direct labor cost and overhead cost selling cost and administrative cost QUESTION 15 An Income Statement of a manufacturer will show the ending balance of work in process contains only manufacturing costs will show the ending balance of materials inventory covers a certain period of time QUESTION 16 Figure 28. Last year Quest Company incurred the following costs Direct Materials Direct Labor Overhead Selling Expenses Administrative Expenses $40,000 60 000 90,000 24,000 22,000 Quest produced and sold 2,000 units at a sales price of $125 each Assume that beginning and ending inventories of materials, work in process, and finished goods were zero Refer to Figure 2-8 Conversion cost per unit was? 550 575 $95 $125 QUESTION 17 Which of the following would be an example of a direct materials cost? windshield on a new automobile nails used to construct a new house glue used to build cabinets solder used to manufacture televisions