Kelsh Company has the following estimated costs for next year: $ 10,000 30,000 40,000 20,000 4.000 1. Direct materials Direct labor Sales commissions Salary of production supervisor Indirect materials Advertising expense Rent on factory equipment 8,000 10,000 Kelsh estimates that 10,000 machine hours will be worked during the year. The overhead rate per machine hour will be (Hint: Choose which of the above costs are Overhead costs, add them together, and divide the total by 10,000): a.$6.80. Os3.40. d. S8.20 b.S6.40. 1 2. The following entry would be made to apply $24,000 of overhead costs to products: 24,000 Manufacturing Overhead Work in Process 24,000 a. true b.false A credir balance in the Manufacturing Overhead account at the end of the year means that overhead was underapplied. a. true 3. O false The journal entry to record when a job is finished would include a: a. debit to Cost of Goods Sold Idebit to Finished Goods Inventory. 4. b. credit to Finished Goods Inventory debit to Work in Process Inventory A company that mass produces identical units would use process costing, rather than job-order costing 5. true b. false 6. A company that uses job-order costing will maintain a separate Work in Process Inventory account for each job under construction. a) true b. false