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.
Correct Answer:
Verified
Correct Answer:
Verified
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