You have just taken a job at a manufacturing company and have discovered that they do not use a predetermined overhead rate to apply overhead costs to products. They simply add actual overhead to the product costs in production as they are incurred.

Compose a short email - 5 to 7 sentences because the president it too busy to read anything longer than that - proposing a predetermined overhead rate for your company. You can use plantwide, departmental or activity based, but whatever you suggest, defend it.

Be sure you answer the question in the context of material in chapter 3. If you use outside references, please cite them.