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

question 90

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) Actual overhead costs of the prior year divided by the actual amount of the cost driver or allocation base
• C) Estimated amount of the cost driver divided by the estimated total overhead costs
• D) Estimated overhead costs divided by the estimated amount of the cost driver or allocation base

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