Understanding the application of the predetermined factory overhead rate in job order costing, the related journal entries, and the typer of companles that use this system is essential for accurate cost accounting and financial management. To explore these concepts, consider the following questions:

Predetermined Factory Overhead Rate in Job Order Costing: How is the predetermined factory overhead rate used in job order costing? Explain how the rate is computed and how it is applied to jobs. Discuss the importance of this rate in assigning overhead costs and provide an example to llustrate the catculation and application.

Journal Entries for Materials and Labor: Identily the journal entries used to add materials and labor into production. Explain the flow of these costs through the job order costing system and provide examples of the journal entries for both direct materials and direct labor.

Job Order Cost System: What Kind of company would use a job order cost system? Describe the characteristics of such companies and explain how costs are accumulated by the job as they move through production. Provide an example of a company that might use this system and detail how costs are tracked for a specific job.