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1) What is the best way to handle manufacturing overhead costs in order to get the most timely job cost information?


The company should apply overhead using an estimated rate throughout the year.


2) At the end of the year, manufacturing overhead has been overapplied. What occurred to create this situation?


The actual manufacturing overhead costs were less than the manufacturing overhead assigned to jobs.  


3) Luca Company overapplied manufacturing overhead during 2006. Which one of the following is part of the year end entry to dispose of the overapplied amount assuming the amount is material?


A decrease to applied overhead



4) Which of the following would be accounted for using a job order cost system? 

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