Abc is significantly less costly implement and maintain than more traditional overhead costing systems. True False When using the planwide overhead rate method, total budgeted costs are combined into one overhead cost pool. True False A company estimates that costs for the next year will be $500,000 for indirect labor, $50,000 for factory utilities, and $1,000,000 for the CEO's salary. The company was machine hours its overhead allocation base. If 25,000 machine hours planned for this next year, then the planwide overhead rate is $22 per medicine hour. True False A company estimates total overhead costs for the next year to be $1, 200,000 and wishes to use direct labor hours as its overhead allocation base. This company makes two products: Fancy X, which requires three direct labor hours per unit, and Plain X, which requires one direct labor hour per unit. If the company plans to make 10,000 units of Fancy X and 10,000 units of plain X, then each unit produced will be allocated the same amount of overhead. Malone Company sells two products Big X and Little X. Current direct material and direct labor costs are detailed below. Next year, the company wishes to use a plantwide overhead rate with direct labor hours as its allocation base. Next year's overhead is estimated to be $10,000. The direct labor and direct materials costs are estimated to be consistent with the current year. Direct labor costs $20 per hour and the company expects to manufacture 15,000 units of Big X and 18,000 units of Littlie X next year. Malone's plantwide overhead rate will be $20.98 per direct labor hour next year. True False The departmental overhead rate method traces costs to each department and then determines an allocation base for each department. True False True False Turtle Company produces t-shirts that go through two operations, cutting and sewing, before they are complete. Expected costs and activities for the two departments are shown below. Given this information, the departmental overhead rate for the cutting department based on direct labor hours is S2.69 per direct labor hour (rounded to two decimals)