LO3-1,2,3 (% point each) Indicate whether each item below is True or False, assuming all else are held constant. An underapplied overhead amount will decrease operating income. An increase in the direct materials purchased will decrease the cost of direct materials used (DM) An increase in the Indirect labor rate will increase the actual overhead. An increase in the cost of goods sold will increase gross margin. LO3-1 (1 point) Briefly explain how the flow of costs in a job-order costing system follows the flow of the physical production (.e., from raw materials purchases to sales and cost of goods sold). Make sure to include how the overhead account is closed' to a zero balance. W NP