4. An equivalent unit of conversion costs is equal to the amount of conversion coses required to: A. start a unit. B. transfer a unit out. C. transfer a unit in. D. start and complete a unit. 5. If overhead is applied to production using direct labor hours and the direct labor efficiency variance is favorable, then the variable overhead efficiency variance is: A. unfavorable. B. neither favorable nor unfavorable. C. favorable. D. either favorable or unfavorable. 6. Which of the following statements concerning a process cost accounting system is false? A. The units in beginning inventory plus the units transferred in during the month should equal the units in the ending inventory plus the units transferred out during the month. B. If material is used evenly throughout a process, the number of equivalent material units will equal the number of equivalent units for the conversion (processing) costs. C. The units in beginning inventory plus the units transferred out during the month should equal the units in the ending inventory plus the units transferred in during the month D. Actual costing may be used in a process costing system to assign indirect overhead costs to departments. 7. In the computation of the manufacturing cost per equivalent unit, the weighted average method of process costing considers: A. current costs only. B. current costs plus cost of beginning Work-in-Process Inventory. C. current costs plus cost of ending Work-in-Process Inventory. D. current costs less cost of beginning Work-in-Process Inventory. A -3