1) Which of the following companies is most likely to use a job-order costing system rather than a process costing system? A) Candy maker B) Shipbuilder C) Crude oil refinery D) Fast food restaurant 2) Dowan Company uses a predetermined overhead rate based on direct labour hours to apply manufacturing overhead to jobs. During the year, Dewan Company incurred $156,600 in actual manufacturing overhead cost. The Manufacturing Overhead account showed that overhead was underapplied by $12,600 for the year. If the predetermined overhead rate is $6.00 per direct labour-hour, how many hours did the company work during the year? A) 28,200 hours. B) 26,000 hours. C) 25,000 hours. D) 24,000 hours. 3) In a normal job-order costing system, the journal entry to record the application of overhead cost to jobs includes which of the following? A) A credit to the Manufacturing Overhead account. B) A debit to Cost of Goods Sold. C) A debit to the Manufacturing Overhead account. D) A credit to the Work in Process inventory account. 4) Testing a prototype of a new product is an example of an activity at which of the following levels? A) Product-level activity. B) Organization-sustaining activity. C) Batch-level activity. D) Unit-level activity. 5) Why may departmental overhead rates NOT correctly assign overhead costs? A) Because of the high correlation between direct labour hours and the incurrence of overhead costs. B) Because of the over-reliance on volume as a basis for allocating overhead costs where products differ regarding the number of units produced, lot size, or complexity of production. Because of the difficulties associated with identifying cost pools for the first stage of the allocation process. D) Because of the use of direct labour hours in allocating overhead costs to products rather than machine time or quantity of materials