A process cost system would be used fora. advertisingb. cereal.c. patient healthcare.d. motion pictures.2.When computing the predetermined overhead rate, the following are useda. actual monthly costs and actual annual activity.b. estimated monthly costs and actual monthly activity.c. estimated annual costs and expected annual activity.d. estimated annual costs and actual activity3.Manufacturing overhead costs that are assigned to production in a process cost system aredebited toa. the Finished Goods Inventory account.b. Cost of Goods Sold.c. the Work in Process accountd. a Manufacturing Overhead account.4.Small amounts of lubricant used in the production process of an auto manufacturer isclassified as a(n)a. indirect materialb. period cost.c. direct material.d. miscellaneous expense25.In assigning accumulated costs to the Work In Process Account, all of the followingwould be entries except:a. raw materials are used.b. the purchase of raw materials.c. overhead is applied.d. factory labor is used.6.The management function that requires managers to ensure that various departmentalactivities are coordinated.a. controlling.b. planningc. directing.d. constraining.7.In job costing, how does a company account for indirect materials?a. It is added to work in process as used.b. It remains part of raw materials inventory..c. It is transferred out of raw materials into work in process as usedd. It is transferred out of raw materials into manufacturing overhead when used8.When there is an increase in automation there is a decline in which component of productcost?a. Direct laborb. Direct materialsc. Manufacturing overheadd. Advertising9..Cinder Company had the following department information for the month:Total materials costsEquivalent units of materialsTotal conversion costsEquivalent units of conversion costsa.bc.d.10.$ 80,00010,000$120,00012,000How much is the total manufacturing cost per unit?$8$15.50$18$10.00.A source document that is used in assigning cost to the job cost sheet?a. Materials requisition slipb. Raw materials receiving slips.c. Materials purchase orders.d. Finished goods shipping documents.