EXERCISE trarying Predetermined Overhead Rates [L04-1, LO 4-2, LO 4-3] Javadi Company makes a single product that is subject to wide seasonal variations in demand. The company uses a job-order costing system and computes predetermined overhead rates on a quar- terly basis using the number of units to be produced as the allocation base. Its estimated costs, by quarter, for the coming year are given on the following page