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Describe advantage of prorating overapplied overhead

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Reference no: EM13890822

1. Why is manufacturing overhead applied to prod- ucts when product costs are used in making pricing decisions?

2. Explain the benefits of using a predetermined overhead rate instead of an actual overhead rate.

3. Describe one advantage and one disadvantage of prorating overapplied or underapplied overhead.

Reference no: EM13890822

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