6. The direct labor and overhead costs of providing services to clients are accumulated in: a. finished services expense b. work in process c. administrative salaries expense d. overhead 7. The following budget data are available for Happy Company Estimated direct labor hours Estimated direct dollars Estimated factory overhead costs Actual direct labor hours Actual direct dollars Actual factory overhead costs 12,000 $90,000 $180,000 DE500 $92,000 $181.000 If factory overhead is to be applied based on direct labor hours as the cost allocation base for the predetermined overhead rate, the amount of overhead applied into production is a $180,000 b. S181,000 c. $172,500 d. $184,000 8. For which of the following businesses would a process cost system be appropriate? a. Auto repair service b. Paint manufacturer C. Specialty printer d. Custom furniture manufacturer 9. Which of the following is not characteristic of a process cost system. a. The system may use several work in process inventory accounts. b. Manufacturing costs are groups by department rather than by jobs. c. The system accumulates costs per job. d. The system emphasizes time periods rather than the time it takes to complete a job. 10. If a company uses a process costing system to account for the costs in its four production departments, how many Work-in-Process will it use? b. 4 C. 1 d. 2