A normal job-order costing system is a system that uses:
A) actual costs for direct materials and estimated costs for direct labor and overhead.
B) estimated costs for direct materials, direct labor, and overhead.
C) actual costs for direct materials and direct labor and estimated costs for overhead.
D) actual costs for direct materials and overhead, estimated costs for direct labor.

Question

Quizplus · Accepted Answer

A normal job-order costing system uses actual costs for both direct materials and direct labor, while overhead costs are typically applied based on a predetermined rate, hence they are estimated.

A Normal Job-Order Costing System Is a System That Uses