Discussion
1. What factors should be considered in selecting a base to be used in computing the predetermined overhead rate?
2. Provide two reasons why overhead might be under-applied in a given year.
3. Would you make any adjustment to the overhead rate the following year? If so what would you do and why?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.