When Calculating the Predetermined Manufacturing Overhead Rate, What Is the Correct

question 45

Multiple Choice

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

• A)Actual overhead costs of the prior year divided by the actual amount of the cost driver or allocation base
• B)Estimated overhead costs divided by the estimated amount of the cost driver or allocation base
• C)Estimated amount of the cost driver divided by the estimated total overhead costs
• D)Estimated overhead costs divided by the number of days in a year

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Definitions:

Nazi Regime

The Nazi Regime refers to the totalitarian government led by Adolf Hitler in Germany from 1933 to 1945, which is known for initiating World War II and committing massive atrocities, including the Holocaust.

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is a socio-economic system characterized by private or corporate ownership of capital goods, by investments that are determined by private decision, and by prices, production, and the distribution of goods determined mainly by competition in a free market.

Joseph Schumpeter

An economist and political scientist known for his theories on economic development and capitalism, particularly the concept of "creative destruction."

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A branch of psychology that focuses on observable behaviors and the ways in which they're influenced by changes in the environment, rather than internal thoughts and feelings.