Indicate Whether Each of the Following Statements Is True or False

Short Answer

Indicate whether each of the following statements is true or false.
The direct costs for a manufacturing company are direct materials and direct labor.______
To assign direct costs to its products,a manufacturer uses a predetermined overhead rate.______
To calculate a predetermined overhead rate,a company must select an appropriate allocation base.______
The predetermined overhead rate is calculated by dividing the expected level of the allocation base by the expected amount of manufacturing overhead costs.______
Calculation and use of a predetermined overhead rate is applicable to service companies as well as manufacturing companies.______