1. Why might a company use a predetermined rate for applying overhead rather than just apply actual overhead?

2. How does job costing for a service organization differ from job costing for a manufacturer?

3. For which of the following businesses would a job order cost system be appropriate?

1. Auto Repair Shop
2. Crude Oil Factory
3. Drug Manufacturer
4. Root Beer Producer

4. Which of the following is not a characteristic of job costing?

1. Each job is distinguishable from other jobs.
2. Identical units are produced on an ongoing basis.
3. Job cost data are used for setting prices and bids.
4. It is possible to compare actual costs with estimated costs.