when actual overheads are more than absorbed overheads it is known as over absorptio 559101

State whether the following statements are true or false:

1. When actual overheads are more than absorbed overheads, it is known as over absorption.
2. A blanket overhead rate is a single overhead rate computed for the entire factory.
3. MHR is separately computed for each machine.
4. Under absorption of overhead results in understatement of cost.
5. Under absorption of overheads means that actual overheads are more than absorbed overheads.
6. Basis of apportionment of store’s service expenses is the value of the material consumed.
7. Basis of apportionment of welfare department expenses is the number of employees.
8. Basis of apportionment of Crèche expense is the number of male employees.
9. Rent is apportioned based on the floor area.
10. For calculating depreciation, scrap value is irrelevant.