A normal job-order costing system is a system that uses:
1. estimated costs for direct materials, direct labor, and overhead.
2. actual costs for direct materials and direct labor and estimated costs for overhead.
3. actual costs for direct materials and overhead, estimated costs for direct labor.
4. actual costs for direct materials and estimated costs for direct labor and overhead.

2. Actual cost for direct materials and direct labor and estimated cost for overhead.

Explanation: The actual cost simply means the actual expenditure made to manufacture or acquire an asset.

Direct materials are the range materials which are actual component of a manufactured product. Direct materials for a bakery includes flour and sugar.

Direct labor are workers directly involved in the production of a product such as machine operator, bakers and so on excluding administrative workers and so on.

Overhead are materials not directly traceable to production of a certain product.

Estimated cost is an approximation of the cost required in manufacturing a good.

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