MCQS

1 When overhead is underapplied*

Gross profit is understated

Cost of goods sold is understated

Finished goods inventory is overstated

Work in process inventory is overstated

2 For which costing system is overhead allocated on the basis of the actual direct labor hours worked?*

Process costing system

Activity-based costing system

Normal costing system

3 A costing system that determines an average cost for all units of product in a particular time period is a*

Batch costing system

Process costing system

Job costing system

Direct costing system