Which of the following results in a predetermined overhead rate?
A) Estimated overhead divided by estimated units produced
B) Estimated overhead divided by actual direct labor hours
C) Actual units produced divided by estimated overhead
D) Estimated direct labor dollars divided by estimated overhead

Question

Quizplus · Accepted Answer

A predetermined overhead rate is calculated by dividing estimated overhead costs by an estimated activity base. In this case, the activity base is the estimated units produced.

Which of the Following Results in a Predetermined Overhead Rate