CHAPTER 2 QUIZ1.Tanner Co. management desires cost information regarding their Rawhide brand. The Rawhide brand is a(n)a.cost object.c. cost assignment.b.cost driver.d. actual cost.2.The cost of replacement light bulbs on campus would be a direct cost to a college but would need to be allocated as an indirect cost to3.What is the total fixed cost of the shipping department of EZ-Mail Clothing Co. if it has the following information for 2002?Salaries$800,000 75% of employees on guaranteed contractsPackaging$400,000 depending on size of item(s) shippedPostage$500,000 depending on weight of item(s) shippedRent of warehouse space$250,000 annual lease4.Morton Graphics successfully bid on jobs printing standard notebook covers during the year using last year’s price of $0.27 per cover. This amount was calculated from prior year costs, noting that no changes in any costs had occurred from the past year to the current year. At the end of the year, the company manager was shocked to discover that the company had suffered a loss. “How could this be?” she exclaimed. “We had no increases in cost and our price was the same as last year. Last year we had a healthy income.” What could explain the company’s loss in income this current year?