Factory overhead is applied to production using a predetermined overhead rate.

Question 1 options:

True

False

A job order cost system would be appropriate for a crude oil refining business.

Question 2 options:

True

False

A manufacturer may employ a job order cost system for some of its products and a process cost system for others.

Question 3 options:

True

False

If factory overhead applied exceeds the actual costs, overhead is said to be underapplied.

Question 4 options:

True

False

The last step in the accounting procedure for process costing is the calculation of equivalent units of production.

Question 5 options:

	True
	False