Exam 2

NAME:___________________________________

MGMT 60100

EXAM II

PART I: Multiple Choice 40 Points (20 questions at 2 pts. Each) Record your answers on the answer sheet attached. Only answers on the answer sheet will be graded.

1) Cost objects include:

A) products

B) customers

C) departments

D) All of these answers are correct.

2) Which statement is true?

A) A direct cost of one cost object cannot be an indirect cost of another cost object.

B) All variable costs are direct costs.

C) A direct cost of one cost object can be an indirect cost of another cost object.

D) All fixed costs are direct costs.

3) At a plant where a union agreement sets annual salaries and conditions, annual labor costs usually:

A) are considered a variable cost

B) are considered a fixed cost

C) depend on the scheduling of floor workers

D) depend on the scheduling of production runs

4) Within the relevant range, if there is a change in the level of the cost driver, then:

A) total fixed costs and total variable costs will change

B) total fixed costs and total variable costs will remain the same

C) total fixed costs will remain the same and total variable costs will change

D) total fixed costs will change and total variable costs will remain the same

5) Within the relevant range, if there is a change in the level of the cost driver, then:

A) fixed and variable costs per unit will change

B) fixed and variable costs per unit will remain the same

C) fixed costs per unit will remain the same and variable costs per unit will change

D) fixed costs per unit will change and variable costs per unit will remain the same

The Singer Company manufactures several different products. Unit costs associated with Product ICT101 are as follows:

Direct materials $ 60

Direct manufacturing labor 10

Variable manufacturing overhead 18

Fixed manufacturing overhead 32

Sales commissions (2% of sales) 4

Administrative salaries 16

Total $140

6) What are the variable costs...