Mello Joy produces 200,000 units of a good that has the following costs: Direct material costs $2,000,000 Direct manufacturing labor costs 1,000,000 Indirect manufacturing labor costs 600,000 Mello Joy‟s per unit prime costs and conver

Mello Joy produces 200,000 units of a good that has the following costs:

Direct material costs $2,000,000

Direct manufacturing labor costs 1,000,000

Indirect manufacturing labor costs 600,000

Mello Joy‟s per unit prime costs and conversion costs, respectively, are

A. $8 and $15.

B. $8 and $18.

C. $10 and $8.

D. $15 and $8.

A cost that always can be directly traced to a cost object is

A. A variable cost.

B. An indirect cost.

C. A conversion cost.

D. A prime cost.

Which one of the following items would not be considered a manufacturing cost?

A. Cream for an ice cream maker.

B. Sales commissions for a car manufacturer.

C. Plant property taxes for an ice cream maker.

D. Tires for an automobile manufacturer.

Rose Co.‟s fixed manufacturing overhead costs totaled $150,000 and variable selling costs totaled $75,000. How should these costs be classified under variable costing?

A. $0 period costs; $225,000 product costs.

B. $75,000 period costs; $150,000 product costs.

C. $150,000 period costs; $75,000 product costs.

D. $225,000 period costs; $0 product costs.

Rose Co.‟s fixed manufacturing overhead costs totaled $150,000 and variable selling costs totaled $75,000. How should these costs be classified under Absorption costing?

A. $0 period costs; $225,000 product costs.

B. $75,000 period costs; $150,000 product costs.

C. $150,000 period costs; $75,000 product costs.

D. $225,000 period costs; $0 product costs.

Rose Co.‟s variable manufacturing overhead costs totaled $150,000 and variable selling costs totaled $75,000. How should these costs be classified under variable costing?

A. $0 period costs; $225,000 product costs.

B. $75,000 period costs; $150,000 product costs.

C. $150,000 period costs; $75,000 product costs.

D. $225,000 period costs; $0 product costs.

Rose Co.‟s fixed manufacturing overhead costs totaled $150,000 and variable manufacturing overhead costs totaled $75,000. How should these costs be classified under absorption costing?

A. $0 period costs; $225,000 product costs.

B. $75,000 period costs; $150,000 product costs.

C. $150,000 period costs; $75,000 product costs.

D. $225,000 period costs; $0 product costs.

Taylor Company is determining the cost behavior of several items in order to budget for the upcoming year. Past trends have indicated the following dollars were spent at three different levels of output:

Unit Levels
10,000 12,000 15,000
Cost A $25,000 $29,000 $35,000

Cost B 10,000 15,000 15,000

Cost C 15,000 18,000 22,500

In establishing a budget for 14,000 units, Taylor should treat Costs A, B, and C, respectively, as

A. Semivariable, fixed, and variable.

B. Variable, fixed, and variable.

C. Semivariable, semivariable, and semivariable.

D. Variable, semivariable, and semivariable.

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