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13) A company has an overhead application rate of 125% of direct labor costs. How much 13) overhead would be allocated to a job if it required total labor costing $20,000? A) S125,000 B) $25,000 C) $250,000 D) $5,000. E) S16,000 14) Features of a job costing system include all but which of the following: A) Separate manufacturing from other products. B) Mass production. C) Heterogeneity D) Diversity of products produced. E) Customization. 15) Cosi Company uses a job order costing system and allocates its overhead on the basis of 15) direct labor costs. Cosi expects to incur $800,000 of overhead during the next period, and expects to use 50,000 labor hours at a cost of S10.00 per hour. What is Cosi Company's overhead applicati A 16.25%. B) 67%. C) 160%. D) 1600%. E) 62.5%. 16) Which of the following is the correct interpretation of a degree of operating leverage of 16) 5? A) Operating leverage of 5 means that if sales increase by 5% the firm will hit its B) Operating leverage of 5 means that the company would need to increase sales by 5 C) Operating leverage of 5 means that sales can decrease by 5% before the firm's D) Operating leverage of 5 measures the degree of debt employed by the firm's debt E) Operating leverage of 5 means that if sales increase by 5%, there will be a 25% break-even point. times in order to hit its break-even point. current level of sales will hit the break-even point. structure. increase in the firm's pretax profit. 17) Which one of the following statements is not true? A) Variable costs per unit remain the same regardless of the volume B) Total variable costs decrease as the volume increases. C) Fixed costs per unit increase as the volume decreases. D) Total fixed costs remain the same regardless of volume within the relevant range. E) Total variable costs change with volume

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