135.Indicate whether each of the following statements is true or false:Calculation of a predetermined overhead rate is based on estimates and can be done at the beginning of a period.A spending...

135.Indicate whether each of the following statements is true or false:


Calculation of a predetermined overhead rate is based on estimates and can be done at the beginning of a period.
A spending variance is the difference between applied overhead costs and estimated overhead costs.
A difference between the actual and estimated volume of activity causes a volume variance.
A volume variance is unfavorable if actual volume is greater than expected.
For an accounting period, the volume variance is amount by which overhead was over- or under-applied.

136.Indicate whether each of the following statements is true or false.


The schedule of cost of goods manufactured and sold is included as part of a company's income statement.
The schedule of cost of goods manufactured and sold indicates the amount of direct raw materials used during the period.
Direct raw materials used + direct labor + applied manufacturing overhead = cost of goods manufactured.
Cost of goods manufactured + ending finished goods inventory - beginning finished goods inventory = cost of goods sold.
Cost of goods manufactured is calculated on the schedule of cost of goods manufactured and sold and is reported on the income statement.