Discuss how the predetermined factory overhead rate can be used in job order cost accounting to assist management in pricing jobs. Discuss.

The use of a predetermined factory overhead rate in job order cost accounting
assists management in pricing jobs. By estimating the cost of direct materials and
direct labor based on past experience and by applying the factory overhead rate, the cost of a job can be estimated. The pre-determined rate also permits the determination of the cost of a job shortly after it is finished, which enables management to adjust future pricing policies to achieve the best combination of revenue and expense.