Saturday 27 October 2012

When calculating the predetermined manufacturing overhead rate, what is the correct basis of calculation? · Estimated overhead costs divided by the estimated amount of the cost driver or allocation base · Actual overhead costs of the prior year divided by the actual amount of the cost driver or allocation base · Estimated overhead costs divided by the number of days in a year · Estimated amount of the cost driver divided by the estimated total overhead costs

When calculating the predetermined manufacturing overhead rate, what is the correct basis of calculation?

·        Estimated overhead costs divided by the estimated amount of the cost driver or allocation base

·        Actual overhead costs of the prior year divided by the actual amount of the cost driver or allocation base

·        Estimated overhead costs divided by the number of days in a year

·        Estimated amount of the cost driver divided by the estimated total overhead costs



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