The following information is available: Estimated Factory Overhead for the year Estimated Direct Labor Hours for the year Actual Factory Overhead for the year Actual Direct Labor Hours for the year $6,000 4,000 $5,930 4,020 1. What is the application rate to be used by the company? A. $2.05 B. $2.00 C. $1.50 D. $1.25 2. What is the amount of the Applied Factory Overhead? A. $6,030 B. $5,025 C. $8,040 D. Not enough information 3. What is the closing entry for the Factory Overhead Account? A. $100 Overapplied B. $60 Underapplied C. $60 Overapplied D. $75 Underapplied 4. Materials requested by the factory totaled $40,000 of which $4,000 were indirect materials. What is the journal entry? A. WIP $36,000, FOH 4,000; Materials $44,000 B. WIP $36,000, FOH 4,000; Materials $40,000 C. WIP $40,000; Cash $40,000 D. Materials 40,000; WIP 36,000, FOH 4,000 5. Inventory sold during the year totaled $12,000. What is the journal entry? A. WIP $12,000; FG $12,000 B. FG $12,000; COGS $12,000 C. FG $10,000; WIP $10,000 D. COGS $12,000; FG $12,000 6. A job order cost system would be appropriate for an accountant's business. A. True B. False 7. Job order cost accounting systems may be used to evaluate a company's efficiency. A. True B. False 8. Activity-based costing is a method of accumulating and allocating costs by department. A. True B. False 9. Job order cost systems can be used to compare unit costs of similar jobs to determine if costs are staying within expected ranges. A. True B. False 10. When the goods are sold their costs are transferred from Work in Process to Finished Goods. A. True B. False