True or False. 1. Factory rent is included in manufacturing overhead, but office rent is a period cost 2. Factory supervision, telephone, heat, light, and power are all example of indirect manufacturing overhead costs. 3. Another name for assignable product costs is inventoriable costs. 4. The income statement of a manufacturing firm has a cost of goods manufactured and not a cost of goods sold. 5. The relevant range is where a fixed cost remains constant 6. Period costs are often called inventoriable costs. 7. Variable costs per unit are affected by changes in activity 8. A decrease in production will result in an increase in fixed production cost per unit 9. A P50,000 grinding machine purchased last year is a sunk cost even if not been paid for. 10. If used to manufacture tables, all of the following would be indirect costs: electricity, glue, bolts, and wood for legs. 11. Factory overhead includes all manufacturing costs which may be variable or fixed, except direct material and direct labor. 12. Wages earned by machine operators in producing the firm's product should be categorized as direct labor. 13. In cost accounting, the term "relevant range" refers to the range over which the cost relationships are invalid. 14. A fixed cost is constant per unit of change in production. 15. Job Order Costing is the best cost accumulation procedure to use when many batches, each differing as to product specification, are produced. 16. The fixed portion of the semi-variable cost of electricity for a manufacturing plant is both factory overhead cost and period cost. 17. In a job order cost system, the application of factory overhead would usually be reflected in the general ledger as an increase in work in process. 18. In a job order cost system, direct labor costs usually are recorded initially as an increase in factory overhead control. 19. Underapplied factory overhead results when factory overhead costs incurred are less than the costs charged to production. 20. In a job order cost system, the use of direct materials previously purchased usually is recorded as a decrease in work in process. Worley Company has under applied overhead of P45,000 for the year. Before disposition of the underapplied overhead, selected year-end balances from Worley's accounting records were Sales Cost of Goods Sold Direct Materials Inventory Work in Process Inventory P1,200,000 P720,000 P36,000 P54,000 Finished Goods Inventory P90,000 1. Under Worley's cost accounting system, over or under applied overhead is allocated to appropriate inventories and cost of goods sold based on year-end balances in it's year end income statement. Worley should report cost of goods sold of