Companies assign manufacturing overhead to work in process on an estimated basis through the use of a(n)

Question

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Companies assign manufacturing overhead to work in process on an estimated basis through the use of a predetermined overhead rate. This rate is calculated by dividing the estimated total overhead costs for the period by an estimated level of activity, such as machine hours or labor hours. This allows for a more accurate allocation of overhead costs to the products being produced.

Companies Assign Manufacturing Overhead to Work in Process on an Estimated