The total manufacturing cost for a job is based on the amount of applied overhead using the predetermined overhead rate

Question

Quizplus · Accepted Answer

The predetermined overhead rate is used to apply overhead to jobs based on an estimated amount of activity. The total manufacturing cost for a job includes direct materials, direct labor, and applied overhead. Therefore, the amount of applied overhead using the predetermined overhead rate does contribute to the total manufacturing cost for a job.

The Total Manufacturing Cost for a Job Is Based on the Amount