MC 21 What is the formula for calculating the predetermined overhead rate?
A. Estimated total manufacturing overhead / estimated total amount of the allocation base
B. Actual total manufacturing overhead / actual total amount of the allocation base
C. Estimated total manufacturing overhead / actual total amount of the allocation base
D. Actual total manufacturing overhead / estimated total amount of the allocation base
Answer:A
MC 21 What is the formula for calculating the predetermined overhead rate?
A. Estimated total manufacturing overhead / estimated total amount of the allocation base B. Actual total manufacturing overhead / actual total amount of the allocation base C. Estimated total manufacturing overhead / actual total amount of the allocation base D. Actual total manufacturing overhead / estimated total amount of the allocation base
Explanation: The predetermined overhead rate is calculated by dividing the estimated total manufacturing overhead by the estimated total amount of the allocation base.