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4.2 Bodgers Ltd. a business that provides a market research service, operates a job costing system. Towards the end of each financial year, the overhead

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4.2 Bodgers Ltd. a business that provides a market research service, operates a job costing system. Towards the end of each financial year, the overhead recovery rate (the rate at which indirect cost will be absorbed by jobs) is established for the forthcoming year. (a) Why does the business bother to predeten'nine the recovery rate in the way outlined? (b) What steps will be involved in predeterrnining the rate? (0) What problems might arise with using a predetermined rate

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