The manufacturing overhead budget calculates the budgeted overhead cost for the year,but not the predetermined overhead allocation rate for the year.

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The manufacturing overhead budget does calculate the budgeted overhead cost for the year, but it is also used to determine the predetermined overhead allocation rate by dividing the total budgeted overhead costs by the total budgeted allocation base (such as direct labor hours, machine hours, etc.).

The Manufacturing Overhead Budget Calculates the Budgeted Overhead Cost for the Year,but