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KATRIN_1 [288]
3 years ago
8

A pre-determined overhead rate includes:_____.

Business
1 answer:
KiRa [710]3 years ago
8 0

Answer:

a. estimated total manufacturing overhead cost in the numerator.

Explanation:

The formula to compute the pre-determined overhead rate is shown below;

As we know that

Pre-determined overhead rate is

= Estimated total manufacturing overhead cost ÷ estimated activity level

Here estimated activity level can be estimated direct labor hours, estimated machine hours etc

Therefore the option a is correct

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