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

question 142

Multiple Choice

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

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

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