Why do companies use a predetermined overhead rate rather than actual manufacturing overhead costs to apply overhead to jobs?Explain

Why do companies use a predetermined overhead rate rather than actual manufacturing overhead costs to apply overhead to jobs?

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Explain under applied and over applied overhead and tell about the adjustment that is made at the end of the period.

What is a plant wide overhead rate? Why are multiple overhead rates, rather than plant wide rates used by some companies?

What happens to overhead rates based on direct labor when automated equipment replaces direct labor?

Read other students’ postings and respond to as many as possible but no less than two on two different days.

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