QUESTIONS Which of the following is not a product cost under full-absorption costing? Ca. Direct materials used in the current period b. Rent for warehouse used to store current direct materials c. Salaries paid to the top management in the company d. Vacation pay accrued for the production workers e. Direct labour expenses c "When comparing the operating incomes between absorption costing and variable costing, and beginning finished goods exceed closing finished goods, it may be assumed that" a. Sales increased during the period b. Variable cost per unit is less than fixed cost per unit c. Fixed cost per unit is less than variable cost per unit d. Variable costing operating income exceeds absorption costing operating income e. There is an unfavourable production volume c If the unit level of inventory increases during an accounting period then a. Less operating income will be reported under absorption costing than direct costing b. More operating income will be reported under absorption costing than direct costing c. Operating income will be the same under absorption and direct costing d. The exact operating income cannot be determined e. There will be no impact on operating income Using the following information, what is the cost of a unit under the direct costing method? NB: Give your answer as a number only and leave out the units (e.g. 20 and not R20 per unit) Units manufactured 1 000 Fixed overheads R6 000 Fixed selling and admin cost R2 000 Per unit costs: Direct labour R8 Direct material R4 Variable overhead R5 Variable selling and administrative R2