How Do You Calculate the Predetermined Manufacturing Overhead Rate Used

question 163

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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