Explain how predetermined factory overhead rates are computed and why they are used to apply fac- tory overhead to units of products instead of actual overhead costs.
What is the role of material requisitions in a job costing system? Time tickets? Bills of materials?
What does the statement that accounting for overhead involves an important cost-benefit issue mean?
Why is that issue important?
Describe the flow of costs through a job costing system.
What do underapplied overhead and overapplied overhead mean? How are these amounts disposed of at the end of a period?