The Predetermined Overhead Rate Is Calculated as

question 149

Multiple Choice

The predetermined overhead rate is calculated as

• A)actual overhead divided by estimated activity level.
• B)actual overhead divided by actual activity level.
• C)estimated overhead divided by actual activity level.
• D)estimated overhead divided by estimated activity level.

---

Definitions:

Rectangle

A four-sided polygon with four right angles and opposite sides of equal length.

Perfect Competitors

Market participants in a perfectly competitive market where no single buyer or seller has the power to influence prices.

Short Run

A period in economics during which some factors of production or inputs are fixed in quantity and cannot be changed.

Industry

A distinct group of productive or service businesses that share similar characteristics, processes, or goods.