1. Define and explain the meaning of a predetermined manufacturing overhead rate that is applied in a job-order costing system.
2. What are the advantages and disadvantages of using the cost of each print as a manufacturing overhead cost driver?
3. Using the information on the next page, compute and interpret the predetermined manufacturing overhead rate for Wall Décor.
4. Compute the product cost for the following three items.
(a) Lance Armstrong unframed print (base cost of print $12).
(b) John Elway print in steel frame, no mat (base cost of print $16).
(c) Lambeau Field print in wood frame with mat (base cost of print $20).
5.(a) How much of the total overhead cost is expected to be allocated to unframed prints?
(b) How much of the total overhead cùi x.Hmto be allocated to steel framed prints?