1)Selling, general and administrative costs are part of manufacturing overhead.

True or False

2)Factory overhead and burden are terms used as alternatives for the term

__________ overhead.

3) Which of the following are part of manufacturing overhead?

Direct Labor, Indirect Labor or Office Depreciation.

4)The factory maintenance department and the factory administration department are examples of __________ departments.

5)To be in compliance with generally accepted accounting principles, selling and administrative expenses and interest expense should be allocated to the cost of products manufactured in order to properly value inventories on a manufacturer's balance sheet.

True or False

6)Manufacturing overhead must be assigned to both work-in-process inventory and finished goods inventory for external financial reporting purposes.

True or False

7)Only direct manufacturing costs are assigned to inventories and cost of goods sold.

True or False

8)Commissions paid to sell products are reported as part of the cost of goods sold.

True or False

9)Traditional costing is more likely to be associated with allocating manufacturing overhead on the basis of __________.

Activities

Machine Hours

10)The depreciation on the machines used on the manufacturing line is considered to be __________ manufacturing cost.

A Direct or An Indirect.

11)In general, manufacturing overhead has increased as a percentage of product costs during the past 80 years.

True or False

12)The use of a plant-wide rate will be more equitable than the use of departmental rates for allocating manufacturing overhead.

True or False

13)Manufacturing overhead costs are also known as indirect manufacturing costs.

True or False

14)Using only machine hours for assigning manufacturing overhead will likely result in too ___________ costs for low volume products.

Little or Much.

15)The salary of the president of a manufacturer is part of the manufacturing overhead costs.

True or False