Activity-based costing first assigns costs to products and then uses these product costs to assign costs to manufacturing activities.

 Activity-based costing first assigns costs to products and then uses these product costs to assign costs to manufacturing activities.
Group starts True or False 

Answer
False

The departmental overhead rate method uses a different overhead rate for each department.
Group starts True or False 

Answer
True 

The use of a plantwide overhead rate is not acceptable for external reporting under GAAP.
Group starts True or False 

Answer

False

Overhead costs cannot be traced to units of product, so assigning these costs to products requires an allocation method.
Group starts True or False 

Answer

True

In a process costing system, the entry to record cost of materials assigned to a production department requires a debit to the Raw Materials Inventory account and a credit to the Work in Process Inventory account for that department.
Group starts True or False 

Answer

True

Equivalent units of production is the number of whole units that could have been started and completed given the costs incurred in a period.
Group starts True or False 

Answer
True

In the same time period, it is possible that a production department can produce 1,000 equivalent finished units with respect to direct materials and 800 equivalent finished units with respect to conversion.
Group starts True or False 

Answer

True

If the predetermined overhead allocation rate is 250% of direct labor cost and the Finishing Department's direct labor cost for the reporting period is $20,000, the following entry would record the allocation of overhead to the products processed in this department:
 
Account Title    Debit    Credit
Work in Process Inventory—Finishing    50,000    
Factory Overhead         50,000
Group starts True or False 

Answer
True