Question

5) If factory overhead applied exceeds the actual costs, the factory overhead              T        F                    account will have a credit balance.

        

6) The direct materials costs and direct labor costs incurred by a production                T         F

              department are referred to as conversion costs.

7) Generally accepted accounting principles require companies to use only                  T         F

            one factory overhead rate for product costing.

8) The document that serves as the basis for recording direct labor on a job                   T          F      cost sheet is the time ticket.

Answer 1

5
True, If factory overhead applied exceeds the actual costs, the factory overheadaccount will have a credit balance.
6
False, The direct materials costs and direct labor costs incurred by a production department are not referred to as conversion costs.
7
False, generally accepted accounting principles require companies to use only one factory overhead rate for product costing
8
True, The document that serves as the basis for recording direct labor on a job cost sheet is the time ticket