Which of the following companies is most likely to require the use of job costing?

a$.$ A soda manufacturer

b$.$ An oil refinery

c$.$ A glass manufacturer

d$.$ An audit firm

Which of the following is true of under allocated indirect costs?

a$.$ They are calculated by subtracting indirect cost allocated from actual direct costs incurred.

b$.$ They occur when the allocated amount of indirect costs in an accounting period is greater than the incurred

amount.

c$.$ They cannot be adjusted by using the writeoff to work$-$in$-$process approach.

d$.$ They occur when the actual manufacturing overhead costs are greater than the allocated amount.

The overallocated overhead according to the proration approach is:

a$.$ spread among ending work$-$in$-$process inventory, finished goods inventory, and cost of goods sold.

b$.$ added to the cost of goods sold of the current year.

c$.$ restated in the general ledger and job$-$cost records to represent actual cost rates rather than budgeted cost

rates,

d$.$ included in the materials inventory as the manufacturing overhead costs include material inventory.