A. Multiple Choice (each worth 3 the quuestion. points)- Identify the choice that BEST completes the statement or Choice of allocation base should be made based on: A. the relative size of the base B. the base's relation to direct labor. C. the base's activity D. whether the base actually drives the cost being allocated. 2. There are two acceptable methods for closing out any balance of underapplied or overapp overhead. One method involves allocation to t hree accounts (work-in-process, finished goods, and cost of goods sold), whereas the other closes any balance directly to: A. Finished Goods inventory B. Cost of Goods Sold. C. Cost of Goods Manufactured. D. Work in Process inventory 3. A. the amount of cost charged to jobs during the period. B. the amount of cost transferred from Finished Goods to Cost of Goods Sold during the C. the amount of cost placed into production during the period. D. the cost of year The Cost of Goods Manufactured represents period. goods completed during the current year whether they were started before or during the current 4. Malcolm Company uses a predetermined overhead rate based on direct I manufacturing overhead to jobs On September 1, the estimates for the month were: Manufacturing overhead Direct labor-hours... $17.000 13.600 During September, the actual results were: Manufacturing overhca Direct labor-hours.. $18,500 12.000 The cost records for September will show: A. Overapplied overhead of S1,500 B. Underapplied overhead of $1,500 C. Overapplied overhead of $3,500 D. Underapplied overhead of $3,500 Overapplied manufacturing overhead means that: A. the estimated manufacturing overhead cost was less than the actual manufacturing overhead cost. B. the estimated manufacturing overhead cost was greater than the actual manufacturing overhead cost C. the estimated manufacturing overhead cost was less than the applied manufacturing overhead cost. D. the estimated manufacturing overhead cost was greater than the applied manufacturing overhead cost E. the applied manufacturing overhead cost was less than the actual manufacturing overhead cost. F. the applied manufacturing overhead cost was greater than the actual manufacturing overhead cost