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Why do companies use pre-determined overhead rates rather than actual manufacturing overhead cost to apply overhead...

Why do companies use pre-determined overhead rates rather than actual manufacturing overhead cost to apply overhead to jobs?

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Why do companies use pre-determined overhead rates rather than actual manufacturing overhead cost to apply overhead to jobs?
Overheads are part of costing. Costing is required to set prices. Prices need to be determined at the beginning to continue business. So overhead rates are predetermined.
Next, predetermined overhead rates act as a standard. They are used to calculate budget vs actual variances.
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