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allsm [11]
3 years ago
5

A predetermined manufacturing overhead rate is calculated in the same manner as an actual manufacturing overhead rate except tha

t estimated rather than actual costs and activity levels are used in computing predetermined overhead rates.
a) true
b) false
Business
1 answer:
xxMikexx [17]3 years ago
4 0

Answer:

a) true

Explanation:

The Formulae to compute the rates are :

Predetermined manufacturing overhead rate = Estimated Fixed Cost ÷ Estimated Activity

While,

Actual manufacturing overhead rate = Actual Fixed Cost ÷ Actual Activity

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<h3>How to explain the information?</h3>

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