Identify whether the following statements are TRUE or FALSE Advertising costs should be charged to the Manufacturing Overhead account. Period costs are expensed as incurred, rather than going into the Work in Process account. Advertising costs should be charged to the Manufacturing Overhead account. If the manufacturing overhead applied exceeds the actual manufacturing overhead costs of the period, then manufacturing overhead is overapplied The management of Griswell utilizes machine hours as the base. The company expects a total manufacturing overhead of $702,000 and the total machine hours is 39,000 machine-hours in the forthcoming year. In addition, the actual level of activity for the year is 40,200 machine hours. The total manufacturing overhead is $702,000 per year. Calculate whether the overhead is overapplied or underapplied, and by how much amount? The following information is available regarding MetLife Traders in Oman Total Sales 10,000 units Selling Price per unit OMR 10 Variable Cost per unit OMR6 Fixed Expenses OMR 32,000 You are required to calculate 1. Break-Even Point in Units 2. Break-Even Point in OMR 3. Contribution Margin Ratio 4. Margin of Safety in OMR 5. The company believes that by increasing the fixed expenses by OMR20,000 and increasing the quality of raw materials (Variable Cost increases by OMR 1 per unit), the company can increase the sale by 20%. Would you recommend this decision? (Show your answers) 6. Degree of Operating Leverage