2. Depreciation on office equipment would be included in product costs. F
3. When the predetermined overhead rate is based on direct labor-hours, the amount of overhead applied to a job is proportional to the estimated amount of direct labor-hours for the job. F
4. Indirect materials are charged to specific jobs. F
5. When a job is completed, the goods are transferred from the production department to the finished goods warehouse and the journal entry would include a debit to Work in Process. F
6. If the actual manufacturing overhead cost for a period exceeds the manufacturing overhead cost applied, then manufacturing overhead would be considered to be underapplied. T
7. In calculating cost per equivalent unit under the weighted-average method, prior period costs are not combined with current period costs. F
8. The "costs to be accounted for" portion of the cost reconciliation report includes the cost of ending work in process inventory and the costs added during the period. F
9. The "costs accounted for" portion of the cost reconciliation report includes the cost of beginning work in process inventory and the costs added to production during the period. F
10. Incremental analysis is generally the most complicated and least direct approach to decision making. T
11. The impact on net operating income of a given dollar change in sales can be computed by multiplying the contribution margin by the dollar change in sales. F
12. In two companies making the same product and with the same total sales and total expenses, the contribution margin ratio will be higher in the company with a higher proportion of fixed expenses in its cost structure. T
13. All other things the same, an increase in variable expense per unit will reduce the break-even point. F
14. The margin of safety in dollars equals the excess of actual sales over budgeted sales. F
15. All other things the same, in periods of