1. Direct material costs usually flow through the Materials Inventory account first, then directly to the Finished Goods account, and then through the Cost of Goods Sold account.

True

False

2. Fixed costs within the relevant range remain constant in total but vary per unit.

True

False

3. Cost of goods manufactured appears on the income statement of a manufacturing company in a similar manner as purchases appear on the income statement of a merchandising company.

True

False

4. Comparing actual performance to expected performance is part of the control function of management.

True

False

5. A company with a predetermined overhead application rate of $4.25 per direct labor dollar, that actually incurred 37,800 hours of direct labor at $19 per hour, would allocate $160,650 of manufacturing overhead costs to products for that period.

True

False