Which of the following statements is (are) true?
13. Which of the following statements is (are) true?
A) Companies that produce many different products or services are more likely to use job-order costing systems than process costing systems.
B) Job-order costing systems are used by service firms and process costing systems are used by manufacturers.
C) Costs are traced to departments and then allocated to units of product when job-order costing is used.
D) All of the above.
14. The Precision Company used a predetermined overhead rate last year of $3 per direct labor hour, based on an estimate of 24,000 direct labor hours to be worked during the year. Actual costs and activity during the year were:
Actual manufacturing overhead cost incurred $84,000
Actual direct labor hours worked 27,000
A) $3,000 underapplied.
B) $3,000 overapplied.
C) $12,000 underapplied.
D) $12,000 overapplied.
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