How Do You Calculate the Predetermined Manufacturing Overhead Rate Used

question 285

Multiple Choice

How do you calculate the predetermined manufacturing overhead rate used to allocate manufacturing overhead costs?

• A)By multiplying the total estimated manufacturing overhead costs by the total estimated amount of the allocation base
• B)By dividing the total estimated amount of the allocation base by the total estimated manufacturing overhead costs
• C)By dividing the total estimated manufacturing overhead costs by the total actual amount of the allocation base
• D)By dividing the total estimated manufacturing overhead costs by the total estimated amount of the allocation base

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Definitions:

Accrued Revenues

Revenues earned in one accounting period but not received until a later period.

Adjusting Entry

A journal entry made in accounting records to update the balances of accounts at the end of an accounting period.

Interest Accrued

Interest that has been earned but not yet paid or received, typically recorded as an asset or expense depending on context.

Adjusting Entry

a journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate period for accurate financial reporting.