In a Normal Costing System,how Is the Predetermined Overhead Rate

question 14

Multiple Choice

In a normal costing system,how is the predetermined overhead rate calculated?

• A)Divide actual manufacturing overhead by the normal (or estimated)activity level.
• B)Divide estimated manufacturing overhead by the actual activity level.
• C)Divide estimated manufacturing overhead by the normal (or estimated)activity level.
• D)Divide actual manufacturing overhead by the actual activity level.

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Definitions:

Months

Periods of time in the calendar year, each typically lasting about 30 to 31 days.

Vocalizes

The act of producing sound or speech, often used in the context of how organisms, including humans, express themselves audibly.

Cools, Babbles

An expression indicating the early stages of an infant's vocal development characterized by making cooling and babbling sounds.

Months

are units of time in calendars that approximately correspond to the period of the lunar cycle, used to divide the year.