1- PF Inc. uses a job-order costing system. They apply overhead based upon direct labor hours used. When applying manufacturing overhead to jobs, the formula to calculate the amount is as follows:

Predetermined overhead rate times the actual direct labor hours for the particular job.

Predetermined overhead rate divided by the actual direct labor hours incurred on the particular job.

Predetermined overhead rate times the total manufacturing overhead incurred on the particular job.

Predetermined overhead rate divided by the total manufacturing overhead for a particular job.

2- In a job order costing system, the use of direct materials is added to which account?

		Finished Goods Inventory
		Manufacturing Overhead
		Work In Process
		Direct Labor

3- McQueen 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 $300,000 and direct labor-hours would be 10,000. The actual figures for the year were $150,000 for manufacturing overhead and 12,000 direct labor-hours. The predetermined overhead rate would be:

		$30.00
		$285.00
		$20.00
		$25.00