Answer the following questions: 1. Why do managers use a predetermined manufacturing overhead allocation rate rather than the actual rate to cost jobs? 2. Jobs will typically be either overcosted or undercosted. Is one worse than the other? Explain your thoughts. 1. Why do managers use a predetermined manufacturing overhead allocation rate rather than the actual rate to cost jobs? Managers use a predetermined manufacturing overhead rate so that they can get information on the cost of producing various jobs. Managers total manufacturing overhead costs incurred, and the could only use an actual rate if they the year to obtain the total quantity of the allocation base. Managers are willing to for the sake of 2. Jobs will typically be either overcosted or undercosted. Is one worse than the other? Each situation has its drawbacks. Explain your thoughts. An undercosted job could lead to actual losses or lower profits than expected. An overcosted job could lead to higher pricing and becoming less competitive