Why must a company estimate the amount of factory overhead assigned to individual jobs or job lots?

2. Some companies use labor cost to apply factory overhead to jobs. Identify another factor (or base) a company might reasonably use to apply overhead costs.

3. What information is recorded on a job cost sheet? How do management and employees use job cost sheets?

4. In a job order costing system, what records serve as a subsidiary ledger for Work in Process Inventory? For Finished Goods Inventory?

5. What journal entry is recorded when a materials manager receives a materials requisition and then issues materials (both direct and indirect) for use in the factory?

6. How does the materials requisition help safeguard a company's assets?

7. What events cause debits to be recorded in the Factory Overhead account? What events cause credits to be recorded in the Factory Overhead account?

8. Why must a company use predetermined overhead rates when using job order costing?