If the company bases its predetermined overhead rate on capacity, the predetermined overhead rate is closest to:
A)$9.28
B)$12.56
C)$11.52
D)$10.34

Name: If the company bases its predetermined overhead rate on capacity, the predetermined overhead rate is closest to: A)$9.28 B)$12.56 C)$11.52 D)$10.34
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Question

Quizplus · Accepted Answer

The predetermined overhead rate is calculated by dividing the estimated total manufacturing overhead cost by the estimated total amount of the allocation base at capacity.

If the Company Bases Its Predetermined Overhead Rate on Capacity