PART II - TRUE/FALSE (20 points) Instructions: Designate whether each of the following statements is true or false. 1. Activity-based costing allocates overhead to multiple activity cost pools and assigns the activity cost pools to products by means of cost drivers. 2. An activity-based overhead rate is computed by dividing the estimated overhead per activity by the number of cost drivers expected to be used per activity. 3.In the minimum transfer price formula, variable cost is defined as the variable cost of units sold internally. 4.If actual costs are greater than standard costs, the variance is favorable. 5. An unfavorable labor quantity variance indicates the actual number of direct labor hours worked was greater than the number of direct labor hours that should have been worked for the output attained. 6.A direct labor price standard is frequently called the direct labor efficiency standard. 7.On an income statement prepared under a standard cost accounting system, cost of goods sold is stated at standard costs with variances disclosed separately. 8. The physical units are a measure of the work done during a period, expressed in fully completed units. 9. Manufacturing costs in beginning work in process are ignored in computing the cost of units transferred out and the cost of ending work in process. 10. The first step in activity-based costing is to identify the cost driver that has a strong correlation to the activity pool