5. What is the purpose of using a predetermined overhead rate?

6. Review Note 2.23 "Business in Action 2.1" Explain why Boeing likely uses a job costing system. How does the information that comes from a job costing system help Boeing make better decisions?

7. What is a normal costing system, and why do companies tend to use a normal costing system to apply overhead to jobs rather than using actual overhead costs?

8. Describe the two important factors in selecting an overhead allocation base.

9. What cost information is recorded on the debit side of the manufacturing overhead account, and what information is recorded on the credit side?

10. When is manufacturing overhead under-applied? When is it over-applied?