The actual overhead rate will almost certainly be different than the predetermined rate. Why? What 2 things could have caused them to be different.

Why do you suppose that there are different ways to dispose of mis-applied overhead when the amount is immaterial as opposed to when its material?

Does the use of Normal Costing impact financial reporting in a meaningful way? Why or why not?

Does the use of Normal Costing affect planning, controlling and decision making?

Why is the choice of an allocation base so important?How do you think a company decides what driver amount to use in the DENOMINATOR in figuring a POHR?