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Within the relevant range, variable costs can be expected to:

vary in total in direct proportion to changes in the activity level.

Sargent Corporation applies overhead cost to jobs on the basis of 70% of direct labor cost. If Job 210 shows $20,300 of manufacturing overhead cost applied, how much was the direct labor cost on the job?

$29,000 Manufacturing overhead applied = Predetermined overhead rate × Amount of the allocation base incurred $20,300 = 0.70 × Direct labor cost Direct labor cost = $20,300 ÷ 0.70 = $29,000

Job cost sheets contain entries for actual direct material, actual direct labor, and actual manufacturing overhead cost incurred in completing a job.

False

Property taxes on a company's factory building would be classified as a(n):

product cost

Cost of the old X-ray machine

sunk cost

Cost of electricity to run the x-ray machines

differential cost

Cost of the new color laser printer

differential cost

Cost of x- ray film used in the old machine

differential cost

The cost of maintaining the old machine

differential cost

The salary of the head of the Radiology Department

none

The salary of the head of the laboratory department

none

rent on the space occupied by radiology

none

Benefits from a new DNA analyzer

opportunity cost