QUESTION 5 When is a volume-based cost system appropriate for a service company? OA volume-based cost system is always appropriate for a service company. OA volume-based cost system is never appropriate for a service company. OA volume-based cost system is appropriate for a service company when certain customers require more attention and a higher level of service than other customers. OA volume-based cost system is appropriate for a service company when every customer places a similar demand on the company's resources. QUESTION 6 Hickman Company uses a predetermined overhead to assign overhead. The company estimates overhead of $320,000 and 8,000 of direct labor hours for the year. During the year, Hickman Company incurred direct labor hours of 7,000 hours. How much overhead was applied during the year? $245,000 O $273,000 O $280,000 O $320,000