Reference no: EM132523635

Question 1: Total costs are $180,000 when 10,000 units are produced; of this amount, fixed costs are $116,000. What are the total costs when 13,000 units are produced?

Question 2: Direct Apex Corporation leases its corporate headquarters building. This lease cost is fixed with respect to the company's sales volume. In a recent month in which the sales volume was 32,000 units, the lease cost was $716,800. To the nearest whole dollar, what should be the total lease cost at a sales volume of 30,900 units in a month? (Assume that this sales volume is within the relevant range.)

Question 3: Which of the following costs of a manufactured product is NOT a product cost?

A.Direct material.

B.Manufacturing overhead

C.Indirect material

D. Sales commission

Question 4: Which of the following should be classified as part of factory overhead for Caterpillar, a maker of heavy machinery and equipment?

I. Steel plate

II. Plant manager's salary

III. Interest expense on debt

IV. Factory supplies used in the plant

V. Vice President of Finance's salary

VI. Amortization of patents on the new assembly process

A. I, II and V are correct.

B. I, II and III are correct.

C. II, IV and VI are correct.

D. IV, V and VI are correct

Question 5: Muthu Best Curry Company applies overhead based on direct labour hours. At the beginning of the year, the Company estimates overhead to be $600,000, machine hours to be 200,000, and direct labour hours to be 40,000. During April, this same company incurred 5,000 direct labour hours and 8,000 machine hours. What is the predetermined overhead rate?