Factory overhead is applied to production using a predetermined overhead rate.

a$.$ True

b$.$ False

The underapplied factory overhead amount may be transferred to cost of goods sold at the end of the fiscal year.

a$.$ True

b$.$ False

If factory overhead applied is less than the actual costs, the overhead is said to be underapplied.

a$.$ True

b$.$ False

The direct labor and overhead costs of providing services to clients are accumulated in a Work$-$inProcess account.

a$.$ True

b$.$ False

Using the job order cost system, service business are able to bill clients on a weekly or monthly basis, even when the job has not been completed.

a$.$ True

b$.$ False

In a job order cost system, materials and supply costs for a service business are normally included as part of overhead cost.

a$.$ True

b$.$ False

Manufacturers implement the philosophy of just$-$in$-$time processing to produce products with high quality, low cost, and instant availability.

a$.$ True

b$.$ False

Service companies can effectively use activity$-$based costing to compute product $($service$)$ costs.

a$.$ True

b$.$ False