Chapter 3 1. Consider the following statements I. Predetermined overhead rates are based on estimated cost and estimated activity data. Il. The cost of a completed job in a job-order costing system typically consists of the actual direct materials cost of the job, the actual direct labor cost of the job, and the manufacturing overhead cost applied to the job. a. I is true; IIl is true b. I is true; II is false c. I is false; II is true d. I is false; II is false 2. Consider the following statements: I. Manufacturing overhead is overapplied if actual manufacturing overhead costs for a period are greater than the amount of manufacturing overhead that was charged to Work in Process. II. If a job is not completed at year end, then no manufacturing overhead cost would be applied to that job when a predetermined overhead rate is used. a. I is true; II is true b. I is true; Il is false c. I is false; Il is true d. I is false; Il is false 3. Consider the following statements: I. The Cost of Goods Manufactured equals beginning work in process inventory, plus the total manufacturing costs charged to jobs, less ending work in process inventory. II. The labor time ticket contains a detailed summary of the direct and indirect labor hours of an employee. a. I is true; Il is true b. I is true; Il is false c. I is false; Il is true d. I is false; Il is false 4. In a job-order costing system, the amount of overhead cost that has been applied to a job that remains incomplete at the end of a period [See chapter emphasis): a. is deducted of the Income Statement as overapplied overhead. b. is closed to Cost of Goods Sold. c. is transferred to Finished Goods at the end of the period. d. is part of the ending balance of the Work-in-Process inventory account. 5. In a job-order costing system that is based on machine-hours, which of the following formulas is correct? a. Predetermined overhead rate Actual manufacturing overhead + Actual machine-hours b. Predetermined overhead rate Actual manufacturing overhead + Estimated machine-hours c. Predetermined overhead rate Estimated manufacturing overhead + Estimated machine-hours d. Predetermined overhead rate Estimated manufacturing overhead+ Actual machine-hours