Final answer:
The statement is false. Manufacturing overhead costs are applied to jobs based on a predetermined overhead rate irrespective of the job's completion status at year end, using estimated costs and activity levels set at the year's start.
Step-by-step explanation:
The statement that if a job is not completed at year end, then no manufacturing overhead cost would be applied to that job when a predetermined overhead rate is used is false. In cost accounting, when using a predetermined overhead rate, overhead costs are applied to jobs based on this rate, regardless of whether the job is completed or not. This rate is usually established at the beginning of the year based on estimated costs and activity levels, and it is used to apply overhead costs to jobs throughout the year as they are incurred. For example, if the predetermined rate is based on machine hours, and a job has accumulated machine hours by year end, overhead costs will be applied to that job accordingly, even if the job is not fully completed.