A job-order costing system that relies on normal costing will:

Multiple Choice

• Assign actual direct materials and direct labor costs to jobs.

• Apply overhead cost to jobs by multiplying an actual overhead rate by the estimated amount of the allocation base incurred by the jobs.

• Apply overhead cost to jobs by multiplying an actual overhead rate by the actual amount of the allocation base incurred by the jobs.

• Apply overhead cost to jobs by multiplying a predetermined overhead rate by the estimated amount of the allocation base incurred by the jobs.