How Do You Calculate the Predetermined Manufacturing Overhead Rate Used

question 242

Multiple Choice

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

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

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Definitions:

Liability Policy

An insurance policy that provides coverage for legal claims against the insured, typically covering bodily injury and property damage to third parties.

Legally Obligated

Binding under law or contract, requiring a party to act or refrain from acting in a specified manner.

Coinsurance Costs

Expenses that are not fully covered by insurance and must be shared between the insurer and the insured, typically as a percentage.

Increase Of Hazard

A scenario in insurance where the risk of loss becomes greater than what was contemplated at the time the policy was issued.