6 Which one of the following statements is correct? O A. Direct labour costs are easily traceable to the products that are manufactured. O B. Fixed costs do not change, irrespective of the circumstances. OC Prime cost is sum of the direct materials, direct labour and manufacturing overhead costs. OD. A variable cost is a cost that changes in inverse proportion to a change in activity levels. 7 Which of the following is the most suitable cost driver for quality control in a manufacturing entity? A. Number of materials movements B. Number of orders C Number of machine set-ups OD. Number of inspections 8 The budgeted manufacturing overheads for an estimated 12 500 units was R100 000. The number of units produced was 12 000. The actual manufacturing overheads were R102 500. Which of the following represents the over- or under-applied overheads? A. R2 500 under-applied B. R2 500 over-applied OC R6 500 over-applied O D. R6 500 under-applied