NOTE: For multiple-choice and true/false questions, simply place your cursor over what you think is the correct answer. (There is no need to click the answer.) For fill-in-the-blank questions place your cursor over the _________.

If you have difficulty answering the following questions, learn more about this topic by reading our Explanation of Manufacturing Overhead.

1.

Selling, general and administrative costs are part of manufacturing overhead.

True

False

2.	Factory overhead and burden are terms used as alternatives for the term ____________________ overhead.

3.	Which of the following are part of manufacturing overhead?
Direct labor              Indirect labor              Office depreciation

4.	The factory maintenance department and the factory administration department are examples of _________________ departments.

5.

To be in compliance with generally accepted accounting principles, selling and administrative expenses and interest expense should be allocated to the cost of products manufactured in order to properly value inventories on a manufacturer's balance sheet.

True

False

6.

Manufacturing overhead must be assigned to both work-in-process inventory and finished goods inventory for external financial reporting purposes.

True

False

7.

Only direct manufacturing costs are assigned to inventories and cost of goods sold.

True

False

8.

Commissions paid to sell products are reported as part of the cost of goods sold.

True

False

9.	Traditional costing is more likely to be associated with allocating manufacturing overhead on the basis of
activities              machine hours

10.	The depreciation on the machines used on the manufacturing line is considered to be __  _______________ manufacturing cost.
a direct              an indirect

11.

In general, manufacturing overhead has increased as a percentage of product costs during the past 80 years.

True

False

12.

The use of a plant-wide rate will be more equitable than the use of departmental rates for allocating manufacturing overhead.

True

False

13.

Manufacturing overhead costs are also known as indirect manufacturing costs.

True

False

14.	Using only machine hours for assigning manufacturing overhead will likely result in too ___________ costs for low volume products.
little              much

15.

The salary of the president of a manufacturer is part of the manufacturing overhead costs.

True

False