Chapter 2 Practice -1 01/10/2018 1. The use of a predetermined overhead rate in a job-order cost system makes it possible to compute the total cost of a job before production is begun. TRUE/FALSE 2. If direct labor-hours is used as the allocation base in a job -order costing system, but overhead costs are not caused by direct-labor hours, then jobs with high direct labor requirements will tend to be undercosted relative to jobs with low direct labor requirements TRUE/FALSE 3. The formula for computing the predetermined overhead rate is Predetermined overhead rate Estimated total manuf amount of the allocation base TRUE / FALSE acturing overhead cost + Estimated total 4. Job cost sheets are used to record the costs of preparing routine accounting reports. TRUE / FALSE 5. When completed goods are sold, the transaction is recorded as a debit to Cost of Goods Sold and a credit to Finished Goods. TRUE/ FALSE