Why do companies use predetermined overhead rates rather than actual manufacturing overhead cost to apply overhead to

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Why do companies use predetermined overhead rates rather than actual manufacturing overhead cost to apply overhead to jobs?

Newhard Company assigns overhead cost to jobs on the basis of 125% direct labor cost. The job cost sheet for Job 313 includes $10000 in direct materials cost and $12000 in direct labor cost. A total of 1,000 units were produced in Job 313.

What is the total manufacturing cost assigned to Job 313? What is the unit product cost for Job 313?

Posted Date: Jun 25, 2024 11:05 PM

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Why do companies use predetermined overhead rates rather than actual manufacturing overhead cost to apply overhead to

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