1- A single plant-wide overhead rate generally provides more accurate product costs than multiple departmental overhead rates.

True

False

2- The labor time ticket contains a detailed summary of the direct and the indirect labor hours of an employee.

True

False

3- The salary of the company's president should be charged to the Manufacturing Overhead Incurred account.

rev: 10_03_2016_QC_CS-64203

True

False

4- Two of the reasons why manufacturing overhead may be underapplied are: (1) the estimated total manufacturing overhead cost may have been too high; and (2) the estimated total amount of the allocation base may have been too low.

True

False

5- The cost of goods manufactured for a period includes only the costs of units that are completed during the period.

True

False

6- Ending finished goods inventory in a single product company equals the number of units in ending inventory less the number of units in beginning inventory, multiplied by their unit product cost.

True

False

7- The margin of safety is:

the excess of budgeted or actual sales over budgeted or actual variable expenses.

the excess of budgeted or actual sales over budgeted or actual fixed expenses.

the excess of budgeted or actual sales over the break-even volume of sales.

the excess of budgeted net operating income over actual net operating income.