Question

Generally speaking, manufacturing overhead is applied to production by means of a __________ __________ __________, which is computed under the general formula of dividing __________ __________ __________ by some measure of the __________ __________ __________.

Answer 1

Answer:

means of a predetermined overhead rate, which is computed Estimated manufacturing overhead

By some measure of  the Annual activity level

Explanation:

Manufacturing overhead is applied to production by means of a predetermined overhead rate which is computed under the general formula of dividing estimated manufacturing overhead by some measure of the annual activity level

The manufacturing overhead costs are indirect costs incurred by a business/company in the production process. these costs are classified as overhead costs because they do not affect the production of the goods and services directly they include costs like : rent and administrative costs.

Answer 2

Answer: Predetermined Overhead Rate, Estimated Manufacturing Overhead and Annual Activity Level.

Explanation:

Generally speaking, manufacturing overhead is applied to production by means of a predetermined overhead rate, which is computed under the general formula of dividing estimated overhead rate by some measure of the annual activity level.

A predetermined overhead rate is usually calculated at the beginning of an accounting period. It is calculated by dividing the estimated manufacturing overhead by an activity driver (e.g machine hours).