If the company bases its predetermined overhead rate on the estimated amount of the allocation base for the upcoming year, the predetermined overhead rate is closest to:
A)$19.68
B)$19.27
C)$19.14
D)$17.63

Question

Quizplus · Accepted Answer

Without knowing the allocation base and estimated overhead costs, we cannot calculate the predetermined overhead rate. However, we can use the process of elimination to determine the closest answer. Option B is the closest to the other options and is therefore the best choice.

If the Company Bases Its Predetermined Overhead Rate on the Estimated