The cost of sampling product quality is an example of a unit-level cost.

T/F

A company produces paint that goes through two departments, Department A and Department B. Expected costs and activities for the two departments are shown below. Given this information, the departmental overhead rate for Department B based on machine hours is $4 per machine hour.

	Department A		Department B
Machine hours	50,000	MH	60,000	MH
Direct labor hours	78,500	DLH	100,800	DLH
Overhead costs	$ 392,500		$ 403,200

True or False