Which of the Following Is the Correct Formula to Compute

question 15

Multiple Choice

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

• A) Predetermined overhead rate = Estimated total units in the allocation base ÷ Estimated total manufacturing overhead costs
• B) Predetermined overhead rate = Estimated total manufacturing overhead costs ÷ Estimated total units in the allocation base
• C) Predetermined overhead rate = Actual total manufacturing overhead costs ÷ Estimated total units in the allocation base
• D) Predetermined overhead rate = Estimated total manufacturing overhead costs ÷ Actual total units in the allocation base.

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Definitions:

Absorb

The process by which one substance takes in or soaks up another substance, often used in biological or chemical contexts.

Erythroblastosis Fetalis

A potentially fatal condition in newborns due to incompatibility between maternal and fetal blood types.

RhoGAM

A medication used to prevent Rh incompatibility issues in pregnancies by stopping the mother's immune system from attacking the baby's red blood cells.

Rh-negative

A blood type classification indicating the absence of Rh factor, a protein on the surface of red blood cells.