1. Which of the following companies would probably not use job order costing? A) None of the answer choices is correct.

B) A window washing service.

C) A car repair business.

D) A milk manufacturer.

E) An electrician.

2. T or F: Normal costing is preferred by most companies because it assigns actual overhead costs to jobs.

3. T or F: Underapplied manufacturing overhead results in a debit balance in the Manufacturing Overhead account.

4. T or F: Underapplied overhead occurs when actual overhead costs are lower than overhead costs applied to jobs.

5. T or F: The three most common allocation bases for establishing a predetermined overhead rate include direct labor hours, machine hours, and direct labor costs.

6. T or F: The journal entry for recording timesheet submissions by employees working on various jobs will include a debit to the Direct Labor account.

7. Nguyen Inc. applies overhead to products based on direct labor hours using normal costing. During 2020, total overhead costs were estimated to be $500,000. Actual overhead totaled $540,000 based on 32,000 actual direct labor hours. At the end of the year, overhead was overapplied by $20,000. Based on this information, what was the predetermined overhead rate used during 2020? A) None of the answer choices is correct.

B) $16.88 per direct labor hour.

C) $17.50 per direct labor hour.

D) $16.25 per direct labor hour.

E) $15.63 per direct labor hour.

8. T or F: When a manufacturing company purchases raw materials, the Raw Materials Inventory account is debited.