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dalvyx [7]
3 years ago
8

The predetermined overhead rate is based on the relationship between _____.

Business
1 answer:
Maslowich3 years ago
7 0

Answer:

(A) estimated annual costs and expected annual activity

Explanation:

The formula to compute the predetermined overhead rate is shown below:

Predetermined overhead rate = (Total estimated manufacturing overhead) ÷ (estimated direct labor-hours or estimated machine hours)

It is always calculated on the estimated amount and estimated annual activity i.e direct labor hours or machine hours

So the correct option is a.

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