Accounting 4B 5. Which of the following is only a conversion cost? a) Direct labor b) Raw materials c) Factory overhead d) Period cost e) None of the above. Chapters 14&15 V2 6. Which of the following best describes glue in the making of a wood chai? a) variable cost b) Fixed cost c) Office overhead d) Period cost 7. The entry to record an increase in finished goods inventory may include which of the following a) Debit to raw materials b) Debit to goods in process c) Debit to factory overhead d) Credit to finished goods e) Credit to work in process 8. Which of the following statements is not true regarding fixed and variable costs? a) Fixed costs stay the same and variable costs increase in total as activity volume increases. b) Fixed costs per unit increase and variable costs per unit remain the same c) Both fxed and variable costs per unit increase as activity volume increases. d) All of the above are true. as activity volume decreases. e) None of the above are true. applying $20,000 of overhead to Goods in Process, which of the following is true? a) You have overapplied by $1,000. 9. If you have an ending debit balance of $1000 in the Factory Overhead account after You have underapplied by $20,000. c) You have underapplied by $1,000. d) You have overapplied by $20,000. e) Cannot say from the information given. in the Factory Overhead account at the end of the period means that: a) The bookkeeper has made an error because the debits don't equal the credits. b) The balance will be carried forward to the next period as an overhead cost. c) Actual overhead was less than the overhead amount charged to production. d) The overhead was underapplied for the period. 10. If a company applies overhead to production with a predetermined rate, a credit balance e) Actual overhead was greater than the overhead amount charged to production