Which of the Following Is the Correct Method to Calculate

question 58

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 manufacturing 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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Definitions:

Outboard Motors

Outboard motors are a type of propulsion system for boats, typically mounted on the outside of the hull, used to steer and power a vessel.

Opportunity Cost

The advantages that a person, investor, or company forfeits when they opt for one option instead of another.

Outboard Motors

Engines mounted on the outside of the stern of a boat, used to propel the vessel through the water.

Opportunity Cost

The cost of forgone alternatives when one option is chosen over another.