Monday 14 January 2013

Which of the following is the correct formula to compute the predetermined overhead rate? Estimated total manufacturing overhead costs divided by actual total units in the allocation base. Estimated total units in the allocation base divided by estimated total manufacturing overhead costs. Actual total manufacturing overhead costs divided by estimated total units in the allocation base. Estimated total manufacturing overhead costs divided by estimated total units in the allocation base.

Which of the following is the correct formula to compute the predetermined overhead rate?

 

Estimated total manufacturing overhead costs divided by actual total units in the allocation base.

 

Estimated total units in the allocation base divided by estimated total manufacturing overhead costs.

 

Actual total manufacturing overhead costs divided by estimated total units in the allocation base.

 

Estimated total manufacturing overhead costs divided by estimated total units in the allocation base.



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