A(n)________ is an estimated manufacturing overhead rate computed at the beginning of the year.

Question

Quizplus · Accepted Answer

A predetermined manufacturing overhead rate is an estimated manufacturing overhead rate that is calculated at the beginning of the year based on the estimated amount of manufacturing overhead costs and the estimated amount of the allocation base (such as direct labor hours or machine hours). This rate is used to allocate overhead costs to products or jobs during the year.

A(n)________ Is an Estimated Manufacturing Overhead Rate Computed at the Beginning