Which of the Following Is the Correct Method to Calculate

question 2

Multiple Choice

Which of the following is the correct method to calculate a predetermined overhead rate?

• A) Budgeted total manufacturing cost/budgeted amount of cost driver.
• B) Budgeted overhead cost / budgeted amount of cost driver.
• C) Budgeted amount of cost driver / budgeted overhead cost.
• D) Actual overhead cost /budgeted amount of cost driver.
• E) Actual overhead cost / actual amount of cost driver.

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