Question

1. Select why manufacturers use a predetermined overhead rate to apply manufacturing overhead to their jobs. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.) Manufacturers use predetermined overhead rates to allocate to production jobs the production costs that are not directly traceable to specific jobs. unanswered Manufacturers use predetermined overhead rates to allocate to production jobs the production costs that are directly traceable to specific jobs. unanswered Management will have timely, accurate job-cost information. unanswered Predetermined overhead rates are easy to apply and avoid fluctuations in job costs caused by changes in production volume or overhead costs throughout the year. unanswered

Answer 1

Answer:

The correct answer is: Manufacturers use predetermined overhead rates to allocate to production jobs the production costs that are not directly traceable to specific jobs.

Explanation:

If we are able to trace a cost directly to a product we will not include it in manufacturing overhead. Manufacturing overhead was created to allocate costs that are not directly traceable to a product. It helps manufacturers to allocate costs with certain precision.