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1. Why is a predetermined overhead rate useful in applying overhead costs in a manufacturing environment? Can you think of any downside of using a

1. Why is a predetermined overhead rate useful in "applying" overhead costs in a manufacturing environment? Can you think of any "downside" of using a predetermined overhead to apply/allocate overhead costs to jobs/departments?

http://en.wikipedia.org/wiki/Pre-determined_overhead_rate (Links to an external site.)

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