2-7 Explain why some production costs must be assigned to products through an allocation process. 2-8 Why do companies use predetermined overhead rates rather than actual manufacturing overhead costs to apply overhead to jobs? 2-9 What factors should be considered in selecting an allocation base to be used in computing a predetermined overhead rate? 2-10 If a company fully allocates all of its overhead costs to jobs, does this guarantee that a profit will be earned for the period? 2-11 Would you expect the amount of applied overhead for a period to equal the actual overhead costs of the period? Why or why not? 2-12 What is underapplied overhead? Overapplied overhead? 2-13 What is a plantwide overhead rate? Why are multiple overhead rates, rather than a plantwide overhead rate, used in some companies