1. Hutton Company reported a $750 unfavorable overhead variance on a recent performance report. This means that factory overhead was underapplied during the period.

True or False

2. Companies need service and product cost information for both financial reporting and managerial accounting.

True or False

3. Actual overhead costs are debited to the manufacturing overhead account, while estimated overhead costs are debited to the work in process account.

True or False

4. The predetermined overhead rate is found by dividing the total estimated overhead costs by the total estimated volume of the overhead allocation base.

True or False

5. The absorption costing approach uses the contribution margin income statement format.

True or False