Why must a company prepare a predetermined overhead rate when using job order cost accounting?

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Managerial Accounting

ISBN: 978-0073379586

2010 Edition

Authors: John J. Wild, Ken W. Shaw

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Question Posted: May 17, 2012 05:13 AM

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Why must a company use predetermined overhead rates when using job order costing?
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Why must a company prepare a predetermined overhead rate when using job order cost accounting?

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