A$)$ True$/$False: Wilco produces $20,000$ units during the period and sells $19,500$ units. Operating income will be

higher for Wilco when computed under variable costing rather than absorption costing.

B$)$ True$/$False: The difference between variable costing and absorption costing operating income is the result of the

way fixed selling and administration costs are handled under each method.

C$)$ True$/$False: When MOH is overallocated, COGS is too low and should be adjusted upwards.

D$)$ True$/$False: If MOH is overallocated, the journal entry to dispose of the overallocation will include a credit to

COGS.

E$)$ True$/$False: If appropriate cost drives are selected, an ABC system of allocating overhead costs will generally be

more accurate than a traditional system.

F$)$ True$/$False: Wilco is a producer of copy paper used in standard printers and copiers. Wilco would likely use a

job$-$order costing system to determine the cost of the paper they produce.

G$)$ True$/$False: Generally, prevention costs are greater than external failure costs $($on a per unit basis$).$