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JulsSmile [24]
3 years ago
11

True or False: One reason to use a predetermined overhead rate is to eliminate the effect of seasonal factors.

Business
1 answer:
Ganezh [65]3 years ago
3 0

Answer:

True

Explanation:

Predetermined overhead rate is estimated at the start of the period by dividing the estimated manufacturing overhead cost by an allocation base. Predetermined overhead rate is quite useful especially in eliminating seasonal effects. So, the above statement is a true one important reason to apply the predetermined overhead rate is to mitigate the effects of seasonal factors.

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