When Indirect Materials Are Used in Production,the Manufacturing Overhead Account

question 162

True/False

When indirect materials are used in production,the Manufacturing Overhead account is credited.Process costing is used.

---

Definitions:

Departmental Predetermined Overhead Rates

Rates used to allocate overhead costs to products, calculated in advance for each department based on estimated overheads and activity levels.

Machine-Hours

An index of manufacturing productivity determined by the total hours of machine operation.

Machine-Hours

A measure of production time, indicating how many hours machines are used in the manufacturing process.

Direct Labor-Hours

The total time workers spend producing a product or service, directly associated with the specific work on the product.