1.) All of the costs reported on the income statement of a manufacturing company are period costs.

Group of answer choices

A.) true

B.) false

2.) ABC Company had the following estimated costs for 2022: Direct materials .................... $28,000

Direct labor ........................ $22,000

Advertising expense ................. $15,000

Rent on factory building ............ $13,000

Depreciation on factory equipment ... $11,000

Indirect materials .................. $10,000

Sales commissions ................... $28,000

Production supervisor's salary ...... $40,000

Insurance on factory equipment ...... $15,000 ABC Company estimates that 25,000 machine hours will be used during 2022. Calculate ABC Company's 2022 pre-determined overhead rate based on machine hours.

3.) Baker Company produces refrigerators. Each refrigerator contains a small thermostat that costs $6. During March, 800 of the thermostats were taken from the supply room and installed in refrigerators that were in production. 60% of these refrigerators were completed and transferred into the finished goods warehouse. Of the refrigerators that were completed, 70% were still unsold at the end of March. Assume that there were no inventories of any kind at March 1. Calculate the cost of thermostats in cost of goods sold for March.