Reference no: EM132667103

True or False

Problem 1. Factory overhead includes all manufacturing costs which may be variable or fixed, except direct material and direct labor.

Problem 2. Wages earned by machine operators in producing the firm's product should be categorized as direct labor.

Problem 3. In cost accounting, the term "relevant range" refers to the range over which the cost relationships are invalid.

Problem 4. A fixed cost is constant per unit of change in production.

Problem 5. Job Order Costing is the best cost accumulation procedure to use when many batches, each differing as to product specification, are produced.

Problem 6. The fixed portion of the semi-variable cost of electricity for a manufacturing plant is both factory overhead cost and period cost.

Problem 7. In a job order cost system, the application of factory overhead would usually be reflected in the general ledger as an increase in work in process.

Problem 8. In a job order cost system, direct labor costs usually are recorded initially as an increase in factory overhead control.

Problem 9. Underapplied factory overhead results when factory overhead costs incurred are less than the costs charged to production.

Problem 10. In a job order cost system, the use of direct materials previously purchased usually is recorded as a decrease in work in process.