Why do companies apply overhead to jobs using a predetermined (budgeted) overhead rate instead of applying actual

Question:

Why do companies apply overhead to jobs using a predetermined (budgeted) overhead rate instead of applying actual overhead to jobs?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Managerial Accounting

ISBN: 978-0470578797

4th edition

Authors: James Jiambalvo

See More Books

Question Posted: Sep 12, 2013 09:41 AM

See More Questions

Dillon Corporation applies manufacturing overhead to jobs using a predetermined overhead rate of 75% of direct labor cost. Any under or overapplied manufacturing overhead cost is closed out to Cost...
Why do companies use predetermined overhead rates rather than actual manufacturing overhead costs to apply overhead to jobs?
Why arent actual manufacturing overhead costs traced to jobs just as direct materials and direct labor costs are traced to jobs?
Parker Associates purchased a patent in 2018 for $200,000. The patent will be amortized over 20 years. How would Parker adjust for the annual amortization for the patent on the balance sheet? Credit...
We would like to produce a transparent canopy for an aircraft. If we were to use a traditional window glass canopy, rock or birds might cause it to shatter. Design a material that would minimize...
Fill in the unknowns (in thousands of euros): Sales Expenses excluding depreciation Depreciation Total expenses Income before income taxes Income taxes at 30% Net income Cash effects of operations...
A local theater company was seeking unpaid interns to be involved in their summer theater productions. The company hired several students from Better Business University to fill these slots. At the...
Accenture is a firm that provides a wide range of consulting and services to organizations worldwide. With more than 170,000 employees, the firm has clients in 120 countries that receive many HR and...
18 years ago, I purchased 185 shares of a stock worth $14.25 per share. There was a 2:1 split, a 4:1 split, and a 3:1 split during that time period. Today the stock is worth $1.53 per share. If the...
The average fill volume of a regular can of soft drink is 12 ounces. Suppose the fill volume of these cans ranges from 11.97 to 12.03 ounces and is uniformly distributed. What is the height of this...
What is a job cost sheet? What information does it contain?
Discuss an important characteristic of a good overhead allocation base.
The following transactions occurred during May 2013 of the Lion, Inc.s operations: 1. Sales on account were $5,700. 2. Interest Expense for the month of May was $1,600. Lion made a monthly interest...
______ brings clarity on whether the conflict is felt or perceived, between individuals and groups and emotions plays a crucial role in influencing perceptions. Opposition Cognition Outcomes ...
Why is psychopathy so difficult to treat? What are some of the controversies regarding the treatment of psychopathy?
Organizational restructuring can resolve Intragroup conflict Intergroup conflict Intrapersonal conflict Interpersonal conflict
Discuss the psychosocial context of terrorism.
Describe the nature of violent crimes that are committed by people with schizophrenia.
Should CST be one standard or a flexible standard depending on the complexity of the trial? What are the advantages and/or disadvantages of each approach?
For the following exercises, write the polynomial function that models the given situation. Consider the same rectangle of the preceding problem. Squares of 2x by 2x units are cut out of each corner....
Achi Corp. has preferred stock with an annual dividend of $3.15. If the required return on Achis preferred stock is 7.9%, what is its price? (Hint: For a preferred stock, the dividend growth rate is...
What is an audit, and how does it add to the integrity of accounting information?
What are the functions of the rectifier and the regenerator in an absorption refrigeration system?
What is the distinction between comparability and consistency?
The purpose of this assignment is to better understand what the important pieces of the Linux/Unix operating system that you might want to prioritize reviewing when you are doing a forensic...
What is the function of the Helix system? What are the benefits of this tool? How does it work in terms of digital evidence collection? How do you get evidence of Unix, Linux, and Mac OS operating...
Analyzing revenue, expense, and withdrawal transactions into debit and credit parts Use the chart of accounts for Hals Marketing Services given in Application Problem 2-2. Transactions: Mar. 25. Sold...

Why do companies apply overhead to jobs using a predetermined (budgeted) overhead rate instead of applying actual

Question:

Step by Step Answer:

Actual overhead is not known until the end of the accounting perio...View the full answer

Managerial Accounting

Students also viewed these Managerial Accounting questions