Applying overhead costs in manufacturing environment

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Why is a predetermined overhead rate useful in "applying" overhead costs in a manufacturing environment? Can you think of any "downside" of using a predetermined overhead to apply/allocate overhead costs to jobs/departments?

Reference no: EM131266458

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Applying overhead costs in manufacturing environment : Why is a predetermined overhead rate useful in "applying" overhead costs in a manufacturing environment? Can you think of any "downside" of using a predetermined overhead to apply/allocate overhead costs to jobs/departments?

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