Which of the following is an example of direct labor cost in a factory

Multiple choice (5 pts each) (highlight or clearly mark your answer)1) Which of the following is an example of direct labor cost in a factory?a. Wages of assembly line personnelb. Salary of vice president of productionc. Wages of factory security guardd. Salary of production manager2) Which of the following is true of product costs?a. They are expensed in the period they are paid.b. For external reporting, GAAP requires that they be expensed before the products are sold.c. They are first recorded in an inventory account.d. For merchandising companies, product costs do not include freight costs.3) Which of the following is true of absorption costing?a. the variable manufacturing costs are considered period costsb. the fixed manufacturing costs are considered period costsc. both variable and fixed manufacturing costs are considered product costsd. both variable and fixed manufacturing costs are considered period costs4) Which of the following would use a process costing system rather than a job order costing system?a. a health­care providerb. a music production studioc. a paint manufacturerd. a home remodeling contractor5) The procurement manager was able to bring down the cost of direct materials by purchasing materials of a slightlylower grade quality than the company had used previously. The lower grade of materials, however, meant a higherdefect rate on the assembly line, and higher wastage of materials during production, which in turn loweredoperating income. This situation would have led to a(n):a. favorable direct materials cost variance.b. unfavorable direct labor cost variance.c. unfavorable direct labor efficiency variance.d. favorable direct materials efficiency variance.6) Which of the following is an example of a labor cost standard?a. $40 per direct labor hourb. 50 square feet per unitc. $0.95 per square footd. 0.5 direct labor hours per unitProblems (10 pts each) (please show your work for partial credit)1) Amoeba Manufacturing Company provided the following information for the year 2015:Purchases—Raw MaterialsPlant Utilities & InsuranceIndirect MaterialsIndirect LaborDirect Materials Used in ProductionDirect LaborDepreciation on Factory Plant & EquipmentCost of Goods ManufacturedCost of Goods Sold$90,00067,50011,7504,75096,000117,5006,000290,850304,550stThe inventory account balances as of January 1 2015 are given below.Raw Materials InventoryWork­in­Process InventoryFinished Goods Inventory$42,00012,00049,500What is the ending balance in the finished goods inventory?2) The following information was obtained from Fizz Company:Advertising CostsIndirect LaborCEO’s SalaryDirect LaborIndirect MaterialsDirect Materials UsedFactory UtilitiesFactory Janitorial CostsManufacturing Equipment DepreciationDelivery Vehicle DepreciationAdministrative Wages and SalariesHow much were Fizz’s period costs?$9,90011,00049,00041,0007,90061,0007002,3002,1001,10021,0003) Samson Inc. reported the following information for the year 2015:Service RevenueOperating ExpensesNet IncomeNumber of Services Provided for the Year$40,000$23,625$16,37510,500How much was the unit cost per service?4) Muses Manufacturing produces plastic toys and uses process costing. There are three processing departments—Assembling, Finishing, and Packaging. On January 1, 2012, the Finishing Department had 2,000 units of partiallyprocessed product in production. During January, 32,000 units were transferred in from the AssemblingDepartment and 29,000 units were completed and transferred out. At the end of the month, there were 5,000 unitsof partially processed products remaining in the Finishing Department. See additional details below.Finishing Department, ending balance at January 31, 2012Percentage completion for materials cost:90%Percentage completion for conversion cost:75%For the Finishing Department, what was the number of equivalent units for the month of January, with respect to directmaterials?5) Antique Works is owned and operated by a craftsman who makes replicas of historic firearms for museums,sportsmen, and collectors. The cost data are as follows:Price per unitVariable costs per unitFixed costs per month$7204708,000If Antique expects to sell 40 units per month, what is his margin of safety expressed in units per month?6) Jame Company sells glass vases at a wholesale price of $3 per unit. The variable cost of manufacture is $1.75 perunit. The fixed costs are $7,500 per month. Jame sold 5,500 units during this month. Calculate Jame’s operatingincome (loss) for this month.7) Wood Designs Company, a custom cabinet manufacturing company, is setting standard costs for one of itsproducts. The main material is cedar wood, sold by the square foot. The current cost of cedar wood is $4.00 persquare foot from the supplier. Delivery costs are $0.25 per board foot. Carpenters’ wages are $25.00 per hour.Payroll costs are $3.60 per hour and benefits are $5.00 per hour. How much is the direct materials cost standard(per square foot)?