The predetermined overhead rate is estimated at the end of the period and used to assign manufacturing overhead to jobs that were completed during the period.Accountants estimate the predetermined overhead rate in advance,before the accounting period begins,and use it throughout the period to assign manufacturing overhead costs to specific jobs.

Question

Quizplus · Accepted Answer

The predetermined overhead rate is estimated before the accounting period begins, not at the end, and is used throughout the period to assign manufacturing overhead costs to jobs.

The Predetermined Overhead Rate Is Estimated at the End of the Period