Question # 3 and # 4

Remaining Time: 18 minutes, 35 seconds Question Completion Status: True O False QUESTION 3 If the allocation base in the predetermined overhead rate does not drive overhead costs, it will nevertheless provide reasonably accurate unit product costs because of the averaging process. O True O False QUESTION 4 Meridian Inc. uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. The company has provided the following estimated costs for the next year: Direct materials Direct labor Rent on factory building Sales salaries Depreciation on factory equipment Indirect labor Production supervisor's salary $6,000 $ 20,000 $ 15.000 $ 25,000 $8,000 $ 12,000 $15,000