Which of the Following Is the Correct Formula to Compute

question 91

Multiple Choice

Which of the following is the correct formula to compute the predetermined overhead Rate?

• A)Estimated total units in the allocation base divided by estimated total manufacturing overhead costs.
• B)Estimated total manufacturing overhead costs divided by estimated total units in the allocation base.
• C)Actual total manufacturing overhead costs divided by estimated total units in the allocation base.
• D)Estimated total manufacturing overhead costs divided by actual total units in the allocation base.

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Definitions:

Debt Payments

Money that is paid back to reduce or settle the amount borrowed, including both the principal and the interest.

Single Payment

A one-time transaction to settle a liability or complete a purchase.

Interest Annually

Interest annually refers to interest that is calculated and added to the principal balance once per year.

Term Deposit

A bank deposit that has a fixed term and typically offers a higher interest rate than savings accounts.