ECONOMICS

Detailed explanation-1: -The actual cost of direct materials, the actual cost of direct labor, and manufacturing overhead applied by using a predetermined annual overhead rate.

Detailed explanation-2: -Job order costing is a costing method which is used to determine the cost of manufacturing each product. This costing method is usually adopted when the manufacturer produces a variety of products which are different from one another and needs to calculate the cost for doing an individual job.

Detailed explanation-3: -It accumulates costs for each department within the factory, is not a characteristic of a job order costing system.

Detailed explanation-4: -Which of the following statements is true of a normal costing system? In a normal costing system, only the costs incurred for direct materials are used to determine unit cost.