A(n)________ is an estimated manufacturing overhead rate computed before the year begins.

Question

Quizplus · Accepted Answer

The predetermined manufacturing overhead rate is an estimated overhead rate that is calculated before the year starts. This rate is used to allocate manufacturing overhead costs to products during the year. A cost allocation is a method of assigning costs to cost objects. A cost driver is a variable that affects the cost of a particular activity. The actual manufacturing overhead rate is calculated at the end of the year and is based on the actual overhead costs incurred during the year.

A(n)________ Is an Estimated Manufacturing Overhead Rate Computed Before the Year