Answer: Predetermined Overhead Rate, Estimated Manufacturing Overhead and Annual Activity Level.
Explanation:
Generally speaking, manufacturing overhead is applied to production by means of a predetermined overhead rate, which is computed under the general formula of dividing estimated overhead rate by some measure of the annual activity level.
A predetermined overhead rate is usually calculated at the beginning of an accounting period. It is calculated by dividing the estimated manufacturing overhead by an activity driver (e.g machine hours).
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Answer:
See the table attached for complete solution to the problem.
