Question 7 Job costing is used to: a) Value inventory or service production for financial statements when custom products or services are sold b) Value inventory for financial statements in a mass-production manufacturing setting c) Allocate operating costs such as administration and marketing d) Allocate all costs, direct and indirect, based on the volume of expected activity Question 8 Because overhead costs are allocated in a job costing system they can be considered "variable" for the purpose of decision making. (True/False) Question 9 Which of the following statements regarding the uses and limitations of job costing is true? a) Job costs are measured accurately b) The total job cost of an individual unit is an incremental cost, that is, it does not include average costs of any type c) Developing information within job costing systems requires judgment d) Job costing systems are not subject to uncertainties Question 10 An organization's accountant is estimating next period's total overhead costs. She performed two regression analyses, one based on direct labour hours and the other based upon machine hours. The results were: Total overhead =$150,000+$4x direct labour hours Adjusted R-square =0.65 Total overhead =$130,000+$5 machine hours Adjusted R-square =0.77 For the next period, the accountant anticipates using 28,000 direct labour hours and 26,000 machine hours. Based upon this information, what is the best estimate for overhead for the next period? a) $262,000 b) $260,000 c) $254,000 d) $270,000