SlMTech analysed the relationship between total factory overhead and changes in direct labour hours. It found the following: Y = $6,000 + $6X. The Y in the equation is an estimate of: A. Total variable costs. B. Total direct labour hours. C. Total factory overheads. D. Total xed costs. If production volume increases from 16,000 units to 20.000 units: A. Fixed costs will increase by 20%. B. Fixed costs will increase by 25%. C. Variable costs will increase by 25%. D. Mixed and variable costs will increase by 25%. Which ofthe following costs would be considered a direct material? A. Glue in the production of automobiles. B. Electricity consumed in the factory C. Paper used in the production of books. D. Depreciation on the corporate ofce building. Which ofthe following is NOT a period cost? A. Receptionist's salary. B. Steel used in the production of steel railings. C. Depreciation on sales staff's cars. D. Sales commission. A possible cost driver to use when allocating cafeteria costs would be: A. number of square feet. B. number of direct labour hours. C. number of employees. D. market value of square footage. In a traditional manufacturing company, product costs include: A. direct materials only. B. direct materials. direct labour, and factory overhead. C. direct materials and direct labour only. D. direct labour only. 7. The following production and average cost data for two levels of monthly production volume have been supplied by a company that produces a single product: Production volume 1,000 units 3,000 units Direct materials $13.20 per unit $13.20 per unit Direct labour $14.50 per unit $14.50 per unit Manufacturing overhead $65.40 per unit $29.40 per unit The best estimate of the total monthly fixed manufacturing cost is: A. $65,400 B. $88,200 C. $93, 100 D. $54,000