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:

S Index Fund

A type of mutual fund or exchange-traded fund (ETF) that replicates the performance of a specific benchmark index, often used for passive investing.

PHStat

An Excel add-in program that enhances the statistical analysis capabilities of Microsoft Excel, often used for educational purposes or in decision-making processes.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the individual values in a dataset deviate from the mean.

Covariance

A measure of the degree to which two variables change together, indicating the direction of their linear relationship.