1. Define cost object and give three examples!
2. What is the main difference between direct costs and indirect costs?
3. Axle and Wheel Manufacturing currently produces 1,000 axles per month. The following per unit data apply for sales to regular customers:

Direct materials $200

Direct manufacturing labour 30

Variable manufacturing overhead 60

Fixed manufacturing overhead 40

Total manufacturing costs $330

The plant has capacity for 2,000 axles.

Required:

a. What is the total cost of producing 1,000 axles?

b. What is the total cost of producing 1,500 axles?

c. What is the per unit cost when producing 1,500 axles?