1. Please answer the following based on the concepts learned in the previous units. ( All of the following are True / False based )

A. When a process cost accounting system records the purchase of materials, the Materials account is credited. True or False

B. If the budgeted factory overhead cost is $460,000, the budgeted direct labor hours is 80,000, and the actual direct labor hours is 6,700 for the month, the amount of factory overhead to be allocated is $38,525 (if the allocation is based on direct labor hours). True or False

C. If the activities causing overhead costs are different across different departments and products, use of a plantwide factory overhead rate will cause distorted product costs. True or False

D. Use of a plantwide factory overhead rate assumes that the activities causing overhead costs are the same across all departments and products. True and False

E. A plantwide factory overhead rate is computed by dividing total budgeted factory overhead costs by the plantwide allocation base. True or False