QUESTION 1

To calculate total product cost you will use direct material plus direct labor and applied manufacturing overhead.

True

False

QUESTION 2

Using actual manufacturing overhead to calculate total manufacturing cost is feasible but it makes billing customers during the fiscal year more difficult

True

False

QUESTION 3

Total product cost plus beginning Work in Process minus ending Work in process refers to the units that were completed during the year.

True

False

QUESTION 4

Direct labor cost multiplied by average labor rate is equal to labor hours worked

True

False

QUESTION 5

If you use applied overhead to calculate total product cost, you do not need to adjust the cost of goods sold at year-end.

True

False