Walker Company applies manufacturing overhead based on direct labor hours. Information concerning manufacturing overhead and labor for the year as follows:

Actual manufacturing overhead	$163,800
Estimated manufacturing overhead	$158,600
Direct labor incurred	2,500 hours @ $22 = $55,000
Direct labor estimated	2,600 hours @ $21 = $54,600

How much is over or underapplied overhead at year end?

$6,100 underapplied.

$7,262 underapplied.

$11,300 underapplied.

$5,200 overapplied.

Which one of the following statements is correct?

Production is continuous when a job-order costing is used to ensure that adequate quantities are on hand.

Companies that produce many different products or services are more likely to use process costing systems.

Process costing systems use periodic inventory systems.

Process costing systems assign costs to departments or processes for a time period.