How do you calculate the predetermined manufacturing overhead rate used to allocate manufacturing overhead costs?
A.By dividing the total estimated manufacturing overhead costs by the total estimated amount of the allocation base
B.By dividing the total estimated amount of the allocation base by the total estimated manufacturing overhead costs
C.By dividing the total estimated manufacturing overhead costs by the total actual amount of the allocation base
D.By multiplying the total estimated manufacturing overhead costs by the total estimated amount of the allocation base
Answer- The calculation of predetermined manufacturing overhead rate used to allocate manufacturing overhead costs = By dividing the total estimated manufacturing overhead costs by the total estimated amount of the allocation base (Option A).
Explanation- Predetermined overhead rate per hour = Total budgeted manufacturing overhead costs/ Budgeted direct labor hours (allocation base).
How do you calculate the predetermined manufacturing overhead rate used to allocate manufacturing overhead costs? A.By...
How do you calculate allocated manufacturing overhead to a certain job? By multiplying the total estimated manufacturing overhead by the total estimated allocation base to be used = A By multiplying the predetermined manufacturing overhead rate by the estimated allocation base to be used by the job = B By multiplying the predetermined manufacturing overhead rate by the actual allocation base used by the job = C By multiplying the estimated manufacturing overhead rate by the actual allocation base used...
CH 2 KB. The predetermined manufacturing overhead rate is calculated by multiplying the actual allocation base factor by the estimated annual MOH multiplying the predetermined MOH rate by the actually allocation base factor dividing the annual estimated MOH by the annual estimated MOH allocation base multiplying the predetermined MOH rate by the actual allocation base
A predetermined overhead rate ... a. Is used to allocate manufacturing overhead costs to jobs. b. Is used to assign direct material and direct labor costs to jobs. c. Is used to assign period costs to different jobs. d. Is the predicted growth rate of overhead costs.
The predetermined overhead rate is determined as: Estimated overhead costs divided by estimated allocation base (eg direct labor hours) Actual overhead cost divided by estimated allocation base (eg direct labor hours) Estimated overhead Costs divided by actual allocation base (eg actual direct labor hours) actual overhead costs divided by actual allocation base (eg actual direct labor hours) Do not cost their services using job costing techniques True O False The beginning in Finished Goods Inventory is $50,000, the ending balance...
Why do companies use predetermined overhead rates rather than actual manufacturing overhead costs to apply overhead to jobs? What factors should be considered in selecting an allocation base to be used in computing a predetermined overhead rate?
Which of the following is the correct formula to compute the predetermined overhead rate? M oe Choice O Estimated total units in the allocation base divided by estimated total manufacturing overhead costs C) Estimated to mancung overhead costs vided by estimated total units in the allocation base 0 Actual total manufacturing overhead costs vided by estimated total units in the allocation base O Estimated total manufacturing overhead costs divided by actual total units in the allocation base
A predetermined overhead allocation rate is used to allocate direct materials costs to various processes or departments. Process costing is used. O True False
Data Allocation base Machine-hours Estimated manufacturing overhead cost $300,000 Estimated total amount of the allocation base 75,000 machine-hours Actual manufacturing overhead cost $290,000 Actual total amount of the allocation base 68,000 machine-hours Computation of the predetermined overhead rate Estimated manufacturing overhead cost ? Estimated total amount of the allocation base ? machine-hours Predetermined overhead rate ? per machine-hour Computation of underapplied or overapplied manufacturing overhead Actual manufacturing overhead cost ? Manufacturing overhead cost applied to Work in Process during the...
The company you work for uses machine hours as an allocation base to allocate overhead to jobs. You also collect the following information:Estimated use 47,500m-hPractical capacity 50,000m-hActual usage 46,850m-hFixed manufacturing overhead* $ 1,258,400 *All manufacturing overhead is fixedMachine hours required for Job X55m-h1) Using estimated amount of the allocation base, calculate:a) predetermined overhead rateb) overhead would be applied to Job Xc) underapplied or overapplied overhead2) Using practical capacity amount of the allocation base, calculate:a) predetermined overhead rateb) overhead would be applied to ...
The formula for computing the predetermined overhead rate is: Predetermined overhead rate = Estimated total amount of the allocation base - Estimated total manufacturing overhead cost True or False True False