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5. A process costing system is employed in those situations where: a b manufacturing involves a single, homogeneous product that flows evenly through the production process on a continuous basis. many different products, jobs, or batches of production are being produced each period. a service is performed such as in a law firm or an accounting firm. full or absorption cost approach is not employed. C. d. 6. In a job-order costing system, indirect labor cost is usually recorded first as an increase to: b Work in Process. Manufacturing Overhead. Finished Goods. Cost of Goods Sold. C. d. a 7. Which of the following is the correct formula to compute the predetermined overhead rate? Predetermined overhead rate = Estimated total manufacturing overhead costs Estimated total units in the allocation base b. Predetermined overhead rate = Estimated total units in the allocation base - Estimated total manufacturing overhead costs Predetermined overhead rate = Actual total manufacturing overhead costs Estimated total units in the allocation base d. Predetermined overhead rate = Estimated total manufacturing overhead costs - Actual total units in the allocation base. C. 8. Direct costs: b. are incurred to benefit a particular accounting period. are incurred due to a specific decision. are the variable costs of producing a product. can be easily traced to a particular cost object. C d 9. Manufacturing overhead includes: all direct material, direct labor and administrative costs. b all selling and administrative costs. c. all manufacturing costs except direct labor and direct materials. d. all manufacturing costs except direct labor. 10. When manufacturing overhead is applied to production, it is added to: a the Cost of Goods Sold account. b the Raw Materials account. c. the Finished Goods inventory account. d the Work in Process account