Question

The standard predetermined overhead rate used in setting the standard overhead cost is determined by dividing Group of answer choices budgeted overhead costs by an expected standard activity index. actual overhead costs by an expected standard activity index. budgeted overhead costs by actual activity. actual overhead costs by actual activity

Answer 1

Answer: budgeted overhead costs by an expected standard activity index.

Explanation:

It should be noted that the predetermined overhead rate is typically calculated at the beginning of an accounting period. It is gotten when the estimated manufacturing overhead is divided by estimated activity base.

The standard predetermined overhead rate used in setting the standard overhead cost is determined by dividing budgeted overhead costs by the expected standard activity index. Therefore, the correct option is A.