Questions:
1. Why does job order cost accounting require a predetermined overhead rate?
2. What events result in a debit to Factory Payroll? What events result in a credit?
3. In a job order cost accounting system, why does the Factory Overhead account usually have an overapplied or underapplied balance at period-end?
4. When the Factory Overhead account has a debit balance at period-end, does this reflect overapplied or underapplied overhead?