1. Indirect materials are part of: a. prime costs b. factory overhead costs c. traceable costs d. both (a) and (b) e. both (b) and (c) 2. If the factory overhead account has a credit balance of $1,000, then: a. Factory overhead is overapplied b. Factory overhead is underapplied c. $1,000 will be added to cost of goods sold d. $1,000 will be added to finished goods e. $1,000 will be added to work in process 3. Which one of the following is an example of a fixed cost that is also a product cost? a. Depreciation on a salesperson's car b. Salary of administrative and sales personnel c. Administrative office rent d. Taxes on a factory building e. Both (a) and (d) 4. Often, overapplied overhead is closed out to one account only. This account is: a. cost of goods sold. b. work in process. c. finished goods. d. cost of goods manufactured. e. raw materials