Which of the Following Is the Correct Formula to Compute

question 93

Multiple Choice

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

• A)Estimated total units in the allocation base divided by estimated total manufacturing overhead costs.
• B)Estimated total manufacturing overhead costs divided by estimated total units in the allocation base.
• C)Actual total manufacturing overhead costs divided by estimated total units in the allocation base.
• D)Estimated total manufacturing overhead costs divided by actual total units in the allocation base.