The following data relate to two output levels of a department: Machine hours Overheads 18,000 380,000 20,000 390,000 hour. The variable overhead rate was 5 per The amount of fixed overhead was A 230,000 B 240,000 C 250,000 D 290,000 Fixed costs are conventionally deemed to be: A Constant per unit of output B Constant in total when production volume changes C Outside the control of management D Those unaffected by inflation Which of the following correctly describes a step cost? A The total cost increases in steps as the level of inflation increases B The cost per unit increases in steps as the level of inflation increases C The cost per unit increases in steps as the level of activity increases D The total cost increases in steps as the level of activity increases Which of the following pairs are the best examples of semi-variable costs? A Rent and rates B Labour and materials C Electricity and gas D Road fund licence and petrol