Sample Questions 1. Within the relevant range, a difference between variable costs and fixed costs is: A. variable costs per unit fluctuate and fixed costs per unit remain constant. B. variable costs per unit are constant and fixed costs per unit fluctuate. C. both total variable costs and total fixed costs are constant. D. both total variable costs and total fixed costs fluctuate. 2. Abburi Company's manufacturing overhead is 40% of its total conversion costs. If direct labor is $105,000 and if direct materials are $21,000, the manufacturing overhead is: Show Work $70,000 $157,500 $14,000 $84,000 3. Meginnis Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 5.20 Direct labor $ 3.75 Variable manufacturing 1.65 overhead Fixed manufacturing overhead $ 2.60 Fixed selling expense $ 0.50 Fixed administrative expense $ 0.40 Sales commissions $ 1.50 Variable administrative expense $ 0.50 If 6,000 units are produced, the total amount of direct manufacturing cost incurred is closest to: 4. $79,200 5. $63,600 6. $62,70 7. $53,700 4. In May direct labor was 55% of conversion cost. If the manufacturing overhead for the month was $82,800 and the direct materials cost was $21,700, the direct labor cost was: Show Work $67,745 $101,200 $17,755 $26,522 5. The following costs were incurred in May: Direct materials $ 39,300 Direct labor $ 23,600 Manufacturing $ 22,200 overhead Selling expenses $ 14,000 Administrative expense $ 30,800 Prime costs during the month totaled: $85,100 $129,900 $62,900 $45,800