Part 2: True or False Questions 1.

A job costing system uses budgeted financial information to apply overhead to large numbers of identical units. ( T / F )

2. Manufacturing overhead is a direct cost. ( T / F )

3. A predetermined overhead rate is based on estimates, not actual amounts. ( T / F )

4. In the Manufacturing Overhead Account, applied overhead accumulated on the credit side throughout the accounting period. ( T / F )

5. Actual overhead costs appear are used to calculate Cost of Goods Manufactured. ( T / F )

6. Disposing of immaterial under or over allocated Manufacturing Overhead is usually done by adjusting the Cost of Goods Sold account. ( T / F )