1. Wages paid to vice president of a company would be classified as manufacturing overhead.
2. True
3. False

1. If a company decreases its selling price by $5 per unit due to an decrease in its variable labor cost of $2 per unit, the break-even point in units will:

1. decrease.
2. increase.
3. not change.
4. change but direction cannot be determined.

1. Accounting costs paid to the company.
   1. Direct Labor Cost
   2. Direct Materials Cost
   3. Manufacturing Overhead cost
   4. Selling cost
   5. Administrative cost