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Variable selling and admin $15
Fixed costs:
Fixed manufacturing overhead $275,000
Fixed selling and admin $200,000
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ACCT 505 Midterm Exam (New) Set 1
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Score 144/150
Multiple Choice 10
Essay 4
1. (TCO A) Direct material cost is a part of (Points : 6)
Conversion Cost NO.... Prime Cost NO.
Conversion Cost YES.... Prime Cost NO.
Conversion Cost YES.... Prime Cost YES.
Conversion Cost NO.... Prime Cost YES.
Question 2.2. (TCO A) Total fixed costs (Points : 6)
will increase with increases in activity.
will decrease with increases in activity.
are not affected by activity.
should be ignored in making decisions because they can never
change.
Question 3.3. (TCO A) Property taxes on a company's factory building
would be classified as a(n) (Points : 6)
variable cost.