1) Why are estimated costs and cost drivers used when calculating the predetermined manufacturing overhead rate rather than actual dollars and amounts?

2) Under what circumstance would it be advisable to close manufacturing overhead under or over allocated to Cost of goods sold? When would it be advisable to allocate the difference among Work in Process Inventory, Finished Goods Inventory and Cost of Goods Sold?

3) Describe a situation that would cause manufacturing overhead to be over allocated in a year. Describe a situation that would cause manufacturing overhead to under allocated in a year.

4) If manufacturing overhead is over allocated and is adjusted to cost of goods sold, would income go up or down after the adjustment? If manufacturing overhead is under allocated and is adjusted to cost of goods sold, would income go up or down after the adjustment? Why?