Asked by
Conner Seagraves
on Nov 13, 2024
Verified
Which of the following is the formula to calculate the predetermined factory overhead rate?
A) estimated total factory overhead costs divided by estimated activity base
B) actual total factory overhead costs divided by estimated activity base
C) estimated total factory overhead costs divided by actual activity base
D) actual total factory overhead costs divided by actual activity base
Predetermined Factory Overhead Rate
A rate calculated before a period begins, used to allocate estimated overhead costs to individual units of production based on a specific activity base.
Estimated Activity Base
A projection or forecast used in budgeting and accounting to allocate costs based on predicted levels of activity such as hours worked or units produced.
- Calculate and employ the pre-calculated overhead rate in industrial settings.
Verified Answer
DR
Learning Objectives
- Calculate and employ the pre-calculated overhead rate in industrial settings.
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