1. 36 Points (6 points each). Please put letter selected on each line. No partial credit.

___ 1. As activity volume decreases:

(a) fixed cost per unit increases

(b) variable cost per unit decreases

(c) both a and b

(d) none of the above

____ 2. Walton Co. produces a product that sells for $75 per unit. It incurs $111,000 of total fixed costs and $45 of variable costs per unit. The number of units to be produced and sold to obtain a $31,500 profit after taxes of 30% would be:

(a) 5,050 units

(b) 3,667 units

(c) 5,500 units

(d) 6,200 units

(e) none of the above, the correct answer is ________.

___ 3. Curry Co. has a job order cost system. The following debits (credits) appeared in the work in process account in the general ledger for the month of March 2016:

March 1 balance	$12,000
March 31, direct materials	40,000
March 31, direct labor	30,000
March 31, factory overhead applied	27,000
March 31 to finished goods	(100,000)