Choose the best answer for each of the following questions.

1.			Which of the following statements is (are) true?
			A)	Companies that produce many different products or services are more likely to use job-order costing systems than process costing systems.
			B)	Costs are traced to departments and then allocated to units of product when job-order costing is used.
			C)	Job-order costing systems are used by service firms and process costing systems are used by manufacturers.
			D)	All of the above.
2.			The Westfield Company uses predetermined overhead rates to apply manufacturing overhead to jobs. The predetermined overhead rate is based on machine hours in Department #1 and direct labor cost in Department #2 and. At the beginning of the year, the company made the following estimates:   Dept #1 Dept #2 Direct labor cost $20,000 $15,000 Manufacturing overhead 25,000 30,000 Direct labor hours 16,000 12,000 Machine hours 5,000 1,000 What predetermined overhead rates would be used in Department #1 and Department #2, respectively?
			A)	110% and $15
			B)	$5.00 and 50%
			C)	$8.00 and 50%
			D)	$5.00 and 200%
3.			Nord Company has the following estimated costs for next year: Advertising expense $ 22,000 Direct materials 30,000 Direct labor 110,000 Indirect materials 10,000 Rent on factory equipment 32,000 Sales commissions 150,000 Salary of production supervisor 70,000 The company estimates that 10,000 direct labor and 16,000 machine hours will be worked during the year. If overhead is applied on the basis of machine hours, the predetermined overhead rate per hour will be:
			A)	$7.00.
			B)	$13.88.
			C)	$15.26.
			D)	$17.12.
4.			In a job-order cost system, indirect labor costs would be recorded as a debit to:
			A)	Finished Goods.
			B)	Manufacturing Overhead.
			C)	Raw Materials.
			D)	Work in Process.
5.			In a job order cost system, the use of direct materials would be recorded as a debit to:
			A)	Finished Goods inventory.
			B)	Manufacturing Overhead.
			C)	Raw Materials inventory.
			D)	Work in Process inventory.
6.			Gordon Company's predetermined overhead rate is based on direct labor costs. The company's Work in Process inventory account has a balance of $2,400, which relates to the one job that was not complete at the end of an accounting period. The related job cost sheet includes total charges of $400 for direct materials and $1,000 for direct labor. The company's predetermined overhead rate, as a percentage of direct labor costs, must be:
			A)	100%.
			B)	50%.
			C)	40%.
			D)	17%.
7.			Roberts Company uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs. At the beginning of the year, the company estimated manufacturing overhead would be $200,000 and direct labor hours would be 20,000. The actual figures for the year were $215,000 for manufacturing overhead and 21,000 direct labor hours. The cost records for the year will show:
			A)	overapplied overhead of $5,000.
			B)	underapplied overhead of $5,000.
			C)	overapplied overhead of $10,000.
			D)	underapplied overhead of $10,000.
8.			Seg Company's predetermined overhead rate is based on direct labor hours. At the beginning of the current year, the company estimated that its manufacturing overhead would total $220,000 during the year. During the year, the company incurred $200,000 in actual manufacturing overhead costs. The Manufacturing Overhead account showed that overhead was underapplied by $8,000 during the year. If the predetermined overhead rate was $40.00 per direct labor hour, how many hours were worked during the year?
			A)	5,500 hours
			B)	5,200 hours
			C)	5,000 hours
			D)	4,800 hours
9.			Silky Sportswear manufactures a specialty line of silk-screened T-shirts. The company uses a job-order costing system. During the month, the following costs were incurred on Job A10: direct materials $54,800 and direct labor $19,200. In addition, selling and shipping costs of $28,000 were incurred on the job. Manufacturing overhead was applied at the rate of $25 per machine-hour and Job A10 required 320 machine-hours. If Job A10 consisted of 5,000 shirts, the cost of goods sold per shirt was:
			A)	$50.00
			B)	$22.00
			C)	$16.40
			D)	$14.80
10.			Under Cyclopes Company's job-order costing system, manufacturing overhead is applied to Work in Process inventory using a predetermined overhead rate. During May, the company's transactions included the following: Direct labor cost incurred $428,000 Direct materials issued to production 360,000 Indirect materials issued to production 32,000 Manufacturing overhead cost applied 452,000 Manufacturing overhead cost incurred 500,000 The company had no beginning or ending inventories in May. What was the cost of goods manufactured for May?
			A)	$1,320,000
			B)	$1,288,000
			C)	$1,240,000
			D)	$1,208,000