1) On a manufacturing company's income statement, which of the following is true? 1. Direct labor is separately listed as an expense. 2. Direct materials is separately listed as an expense. 1) A) Only statement I is true. B) Only statement II is true. C) Both statements I and II are true. D) Neither statement is true. 2) Determine if the reasons why manufacturing overhead may be underapplied are true. 1. The estimated total manufacturing overhead cost may have been too high. 2. The estimated total amount of the allocation base may have been too low. 2) A) Only statement I is true. B) Only statement II is true. C) Both statements I and II are true. D) Neither statement is true