Question: 1. Why do companies use predetermined overhead rates rather than actual manufacturing overhead cost to apply overhead to jobs? 2. What is the purpose of

1. Why do companies use predetermined overhead rates rather than actual manufacturing overhead cost to apply overhead to jobs?

2. What is the purpose of the job cost sheet in a job order costing system?

3. Explain the four- step process used to compute a predetermined overhead rate?

4. What factors should be considered in selecting an allocation base to be used in computing a predetermined overhead rate?

5. How is the unit product cost of a job calculated ?

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