What Formula Is Used to Calculate the Predetermined Overhead Rate

question 170

Multiple Choice

What formula is used to calculate the predetermined overhead rate?

• A)estimated annual overhead / estimated annual activity level
• B)actual annual overhead / estimated annual activity level
• C)estimated annual overhead / actual annual activity level
• D)actual annual overhead / actual annual activity level

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Definitions:

Existing Loan

Refers to a loan that is currently active or outstanding, already agreed upon, and under the process of repayment.

Personal Liability

the legal responsibility of an individual to satisfy debts or obligations incurred, using personal assets if necessary.

Partnership

A commercial arrangement in which a business is co-managed and operated by at least two people, following conditions and goals outlined in a Partnership Agreement.

Estoppel

A legal principle that prevents someone from arguing something contrary to a previous position or statement that was relied upon by others.