the high-low method, "b" equals change in activity divided by change in costs. OC X is the dependent variable. Od-a" is the fixed component. QUESTION 14 0.5 points Consider the following statements: 1. Product diversity creates costing problems because diverse products tend to utilize manufacturing activities in different ways. II. Overhead costs that are not incurred at the unit level create costing problems because such costs do not vary with traditional application bases such as direct labor hours or machine hours. III. Product diversity typically exists when a single producte.g., a ballpoint pen is made in different colors. Which of the above statements is (are) true? a. 1 only bill only Candil dand ul. 0.5 points She QUESTION 15 Your company sends you to a conference on a new accounting role, and you skip the afternoon session to go sightseeing. Which IMA standard has been violated? O a. competence b.integrity Occredibility d. confidentiality O variable manufacturing costs. Od: variable selling expenses. QUESTION 18 The person MOST likely to use management accounting information is a(n): O a. shareholder evaluating a stock investment. Ob, governmental taxing authority. Oc assembly department supervisor. O d. banker evaluating a credit application. QUESTION 19 Writer One Inc. manufactures ball point pens that sell at wholesale for $0.80 per unit. Budgeted production in both 2018 and 2019 was 8,000 units. There was no beginning inventory in 2018. The following data summarized the 2018 and 2019 operations 2018 6,500 8,000 2019 9,000 8,000 Units sold Units produced Costs: Variable factory overhead per unit Fixed factory overhead Variable marketing per unit . Fixed Selling and Administrative $ 0.20 $ 1,200 $0.30 $ 320 $ 0.20 $ 1.200 $ 0.30 $ 320 Variable costing operating income for 2019 is calculated to be: A. 5655 OB. 51.030 OC. 5430 C D A. 5655 B. 51.030. OC. $430. OD.91.180 QUESTION 20 0.5 points Save As For external reporting a. costs are classified as either inventoriable or period costs. O b.there are no prescribed rules since no one is exactly sure how investors and creditors will use these numbers O costs reflect current values. d.costs include amounts that reflect both current and future benefits. 0.5 points Save A QUESTION 21 Leisure Life manufactures a variety of sporting equipment. The firm's predetermined overhead application rate was 150 per cent of direct labour cost. Job 104 included direct material of $20 000 and total costs were 525 000. The manufacturing overhead applied to Job 104 to date is a. 55000 6. 53000 O 52500 d. 52000
