When calculation the predetermined manufacturing overhead rate, - 14265

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When calculation the predetermined manufacturing overhead rate, what is the correct basis of calculation?

·        Estimated overhead costs divided by the number of days in a year

·        Estimated overhead costs divided by the estimated amount of the cost driver or allocation base

·        Actual overhead costs of the prior year divided by actual amount of the cost driver or allocation base

·        Estimated amount of the cost driver divided by the estimated total overhead costs

Solution Description

 

When calculation the predetermined manufacturing overhead rate, what is the correct basis of calculation?

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