Finished Goods, Raw Materials and Work-in-Process are decreased by credits and all are classified as assets on the Balance Sheet. a) True b) False Question 2 (1 point) The wages of employees who assemble computers would be classified as a product cost and in terms of cost behavior a variable cost. a) True b) False Question 3 (1 point) At year-end, a credit balance in the Manufacturing Overhead account would indicate overhead was over-applied. a) True b) False Question 4 (1 point) The direct material cost combined with the direct labor cost is known as the prime cost. a) True b) False