Ch 2 Smart Book Acct 201B
Why is the unit product cost different from the cost that would be incurred if another (additional) unit were produced? The unit product cost is an average, not an incremental cost. The cost that would be incurred if another unit were produced cannot be calculated. There would be no additional cost to produce another unit. The predetermined overhead rate changes with each unit produced.
The unit product cost is an average, not an incremental cost.
An essential quality of an overhead allocation base is that it must ______. be a cost associated with producing the firm's goods vary with all overhead costs be common to all the company's products and services be calculated using a predetermined overhead rate
be common to all the company's products and services
The difference between direct labor and indirect labor is that direct labor ______. is a variable cost, while indirect labor is a fixed cost is a manufacturing cost and indirect labor is a period cost is a manufacturing overhead cost, while indirect labor is not can be easily traced to jobs, while indirect labor cannot
can be easily traced to jobs, while indirect labor cannot Reason: Indirect labor could be a variable cost. For example, the number of assistant chefs working in a restaurant may vary with the number of meals served, but it would not be easy to trace the costs to any particular meal served. Reason: Both direct and indirect labor are manufacturing costs. Reason: Indirect labor is a manufacturing overhead cost, while direct labor is not.
Which of the following would not be considered a job in a service firm that uses job-order costing? A patient in a hospital The tax department in an accounting firm A client at a law firm A repair job at an auto repair shop
The tax department in an accounting firm
Select all that apply Typical cost drivers include ______. flight-hours computer time utilities cost machine-hours machine depreciation
flight-hours computer time machine-hours
In a system that uses multiple predetermined overhead rates, overhead is applied ______. before production begins in each department as jobs proceed through the department at the end of each period at the end of the total production process
in each department as jobs proceed through the department
The adjustment for underapplied overhead ______ net income. increases both cost of goods sold and decreases both cost of goods sold and decreases cost of goods sold and increases increases cost of goods sold and decreases
increases cost of goods sold and decreases
The adjustment for underapplied overhead ______ net income. increases both cost of goods sold and decreases cost of goods sold and increases increases cost of goods sold and decreases decreases both cost of goods sold and
increases cost of goods sold and decreases
The adjustment for underapplied overhead ______ net income. increases both cost of goods sold and increases cost of goods sold and decreases decreases cost of goods sold and increases decreases both cost of goods sold and
increases cost of goods sold and decreases
Select all that apply Manufacturing overhead ______. is an indirect cost consists of many different types of costs is directly traceable to units produced contains fixed costs
is an indirect cost consists of many different types of costs contains fixed costs
Manufacturing overhead consists of ______. . a single kind of indirect cost a single kind of direct cost many different kinds of direct costs many different kinds of indirect costs
many different kinds of indirect costs
Allocation bases that do not drive overhead costs ______. cannot be used to calculate overhead using a predetermined rate are difficult to keep track of will not accurately measure the cost of overhead used
will not accurately measure the cost of overhead used
Select all that apply Manufacturing overhead costs ______. consist of many different items do not impact the average cost per unit are indirect costs tend to vary significantly, in total, from one period to the next
consist of many different items are indirect costs
Job-order costing would most likely be used in a(n) ______. dairy farm that produces raw milk oil refinery soda bottling factory construction company
construction company Reason: A dairy farm would be more likely to use process costing than job-oder costing. Reason: An oil refinery would be more likely to use process costing than job-order costing. Reason: A soda bottling company would be more likely to use process costing than job-order costing.
A factor that causes overhead costs is called a ______. manufacturing cost cost object predetermined overhead rate cost driver
cost driver
Manufacturing overhead consists of ______. a single kind of indirect cost many different kinds of direct costs many different kinds of indirect costs a single kind of direct cost
many different kinds of indirect costs
The predetermined overhead rate is multiplied by the actual allocation base incurred by a job to find ______. actual overhead overhead applied to the job the total cost of the job the predetermined overhead rate for the job
overhead applied to the job
The formula for applying overhead to a specific job is ______. estimated manufacturing overhead ÷ amount of allocation base incurred by job predetermined overhead rate × amount of allocation base incurred by job estimated manufacturing overhead ÷ estimated allocation base estimated manufacturing overhead × amount of allocation base incurred by job
predetermined overhead rate × amount of allocation base incurred by job
The formula for applying overhead to a specific job is ______. estimated manufacturing overhead ÷ estimated allocation base predetermined overhead rate × amount of allocation base incurred by job estimated manufacturing overhead ÷ amount of allocation base incurred by job estimated manufacturing overhead × amount of allocation base incurred by job
predetermined overhead rate × amount of allocation base incurred by job
The document used to record the hours workers spend on each job and task is called a ______. production order materials requisition form time ticket
time ticket
Jones Company uses a job-order costing system with a predetermined overhead rate of 120% of direct labor cost. The job cost sheet for Job #420 listed $4,000 in direct materials cost and $5,000 in direct labor cost to manufacture 7,500 units. The unit cost of Job #420 is ______. $2.00 $1.33 $1.20
$2.00 Reason: Total cost of Job #420 = Direct materials + direct labor + overhead (predetermined overhead rate × direct labor cost) = $4,000 + $5,000 + 1.20 × $5,000 = $15,000 Unit product cost = $15,000 ÷ 7,500 units = $2.00 per unit. Correct Answer
Company Dept. A Dept B. Predetermined overhead rate per direct labor hour $2.10 $2.40 $1.80 Direct labor hours hours worked on Job ABC 30 17 13 Based on this information, the overhead applied to Job ABC using multiple predetermined overhead rates is ______. $54.00 $63.00 $64.20 $72.00
$64.20 Reason: $2.40 × 17 + $1.80 × 13 = $64.20
Company Dept. A Dept B. Predetermined overhead rate per direct labor hour $2.10 $2.40 $1.80 Direct labor hours hours worked on Job ABC 30 17 13 Based on this information, the overhead applied to Job ABC using multiple predetermined overhead rates is ______. $72.00 $63.00 $64.20 $54.00
$64.20 Reason: $2.40 × 17 + $1.80 × 13 = $64.20
Company Dept. A Dept B. Predetermined overhead rate per direct labor hour $2.10 $2.40 $1.80 Direct labor hours hours worked on Job ABC 30 17 13 Based on this information, the overhead applied to Job ABC using multiple predetermined overhead rates is ______. Multiple choice question. $72.00 $64.20 $54.00 $63.00
$64.20 Reason: $2.40 × 17 + $1.80 × 13 = $64.20
Predetermined overhead rate per direct labor hour $2.10 $2.40 $1.80 Direct labor hours hours worked on Job ABC 30 17 13 Based on this information, the overhead applied to Job ABC using multiple predetermined overhead rates is ______. Multiple choice question. $72.00 $54.00 $63.00 $64.20
$64.20 Reason: $2.40 × 17 + $1.80 × 13 = $64.20
Which of the following would not be a good allocation base for manufacturing overhead? Units of product Direct labor hours Accounting hours Machine hours
Accounting hours
Why do companies use a predetermined overhead rate rather than an actual overhead rate? An actual overhead rate can never be calculated. A predetermined overhead rate is easier to use. A predetermined overhead rate is more accurate. An actual overhead rate is not known until the end of the period.
An actual overhead rate is not known until the end of the period.
A measure such as direct labor-hours or machine hours used to assign overhead costs to products and services is called a cost driver or a(n) _____________ _________________.
Blank 1: allocation or activity Blank 2: base or driver
The process used to assign overhead costs to products is called overhead _______________
Blank 1: allocation, application, allocating, allocated, assignment, or assigning
The process used to assign overhead costs to products is called overhead _______________________
Blank 1: allocation, application, allocating, allocated, assignment, or assigning
When all overhead is assigned using direct-labor hours, the company has chosen to use a(n) ___________________predetermined overhead rate.
Blank 1: plantwide, single, or plant wide
When all of a company's job cost sheets are viewed collectively, they form what is known as a(n) ____________ ________________
Blank 1: subsidiary Blank 2: ledger
An hour-by-hour summary of an employee's activities throughout the day is found on the _____________ ________________.
Blank 1: time Blank 2: ticket, sheet, or card
Which of the following is only true in a multiple predetermined overhead rate system? Overhead is applied multiple times throughout the period. Each production department may have its own predetermined overhead rate. Multiple types of overhead are included to calculate the predetermined overhead rate.
Each production department may have its own predetermined overhead rate.
Select all that apply The appeal of using predetermined departmental overhead rates is they presumably provide ______. a more accurate accounting of costs higher profitability for the company enhanced information for decision making
a more accurate accounting of costs enhanced information for decision making
Select all that apply The total cost of a job includes ______. actual manufacturing overhead applied manufacturing overhead direct materials cost nonmanufacturing cost direct labor cost
applied manufacturing overhead direct materials cost direct labor cost
Overhead application is the process of ______. calculating a predetermined overhead rate adjusting accounts for the difference between applied and actual overhead assigning manufacturing overhead cost to jobs calculating the total cost of a job
assigning manufacturing overhead cost to jobs
The predetermined overhead rate is calculated ______. before the period begins as soon as actual overhead is known after the period is over as the period progresses
before the period begins
The type and quantity of each type of direct material needed to complete a unit of product is listed on the ______. bill of materials production order time ticket materials requisition form
bill of materials Reason: The accounting department prepares a job cost sheet after the production order has been issued. Reason: The time ticket is used to record the amount of time an employee spends on various activities. Reason: A materials requisition form specifies the type and quantity of materials to be drawn from the storeroom and identifies the job that will be charged for the cost of materials.
When a company uses a departmental approach rather than a plantwide approach to applying overhead, the selling price of the product will always be ______. higher the same different lower
different
To calculate the unit product cost using the job cost sheet ______ by the number of units produced. add direct labor to manufacturing overhead and divide add direct labor to direct materials and divide divide the total job cost multiply the total job cost
divide the total job cost
Costs assigned to units of product under absorption costing include ______. fixed manufacturing variable manufacturing fixed nonmanufacturing variable nonmanufacturing
fixed manufacturing variable manufacturing
Select all that apply A job cost sheet contains ______. manufacturing overhead costs charged to the job materials costs charged to the job selling costs charged to the job labor costs charged to the job the selling price of the job
manufacturing overhead costs charged to the job materials costs charged to the job labor costs charged to the job Reason: The job cost sheet contains only manufacturing costs.
Total manufacturing overhead costs tend to ______. remain fairly constant be impossible to assign to jobs vary greatly with production be easily traceable to jobs
remain fairly constant Reason: Manufacturing overhead can be allocated to jobs. Reason: Total manufacturing overhead costs tend to remain relatively constant from one period to the next. Reason: Manufacturing overhead is not easily traced to jobs.
Select all that apply The unit product cost is the same as the ______. total job cost divided by number of units cost that would be incurred if another unit were produced average product cost per unit incremental unit cost
total job cost divided by number of units average product cost per unit
Select all that apply Widely used allocation bases in manufacturing include ______. units of product product revenue nonmanufacturing costs machine hours direct labor hours direct labor cost
units of product machine hours direct labor hours direct labor cost
Allocation bases that do not drive overhead costs ______. cannot be used to calculate overhead using a predetermined rate will not accurately measure the cost of overhead used are difficult to keep track of
will not accurately measure the cost of overhead used
Which of the following would not be a good allocation base for manufacturing overhead? Units of product Accounting hours Machine hours Direct labor hours
Accounting hours Reason: Units of product are a common allocation base when there is only one product. Reason: Machine hours are a common allocation base. Reason: Direct labor hours are a common allocation base.
Which of the following would be considered direct materials in a service firm that uses job-order costing? Scissors at a hair salon Beds in a hospital Paperwork at a law firm Tools in an auto repair shop
Paperwork at a law firm
Which of the following would not be considered a direct labor cost in a service firm that uses job-order costing? The wages of technicians at an auto repair shop The salary of the manager at a hair salon The salary of a surgeon at a hospital The salary of an attorney at a law firm
The salary of the manager at a hair salon
The adjustment for overapplied overhead ______ net income. decreases cost of goods sold and increases increases both cost of goods sold and increases cost of goods sold and decreases decreases both cost of goods sold and
decreases cost of goods sold and increases
Select all that apply The appeal of using predetermined departmental overhead rates is they presumably provide ______. higher profitability for the company enhanced information for decision making a more accurate accounting of costs
enhanced information for decision making a more accurate accounting of costs
Companies that use job-order costing make ______. a very few products in large numbers many different products
many different products Reason: Companies that make a few products in large numbers generally use process costing.
Jones Company uses a job-order costing system with a predetermined overhead rate of 120% of direct labor cost. The job cost sheet for Job #420 listed $4,000 in direct materials cost and $5,000 in direct labor cost to manufacture 7,500 units. The unit cost of Job #420 is ______. $1.20 $1.33 $2.00
$2.00 Reason: Total cost of Job #420 = Direct materials + direct labor + overhead (predetermined overhead rate × direct labor cost) = $4,000 + $5,000 + 1.20 × $5,000 = $15,000 Unit product cost = $15,000 ÷ 7,500 units = $2.00 per unit.
When a company creates overhead rates based on the actions it performs, it is employing an approach called ________________-______________ costing.
Blank 1: activity Blank 2: based
A single predetermined overhead rate is called a(n) _______________ overhead rate.
Blank 1: plantwide or plant wide
When all overhead is assigned using direct-labor hours, the company has chosen to use a(n) _________________ predetermined overhead rate.
Blank 1: plantwide, single, or plant wide
The adjustment for overapplied overhead ______ net income. decreases both cost of goods sold and decreases cost of goods sold and increases increases cost of goods sold and decreases increases both cost of goods sold and
decreases cost of goods sold and increases
When a company uses a departmental approach rather than a plantwide approach to applying overhead, the selling price of the product will always be ______. different lower the same higher
different
When all of a company's job cost sheets are viewed collectively, they form what is known as a(n) ______. financial statement backup subsidiary ledger job cost ledger book of original entry
subsidiary ledger
Estimated manufacturing overhead $450,000 Estimated direct labor hours 150,000 Actual manufacturing overhead $405,000 Actual direct labor hours 180,000 Based on this information, the predetermined overhead rate per direct labor hour is $ __________
Blank 1: 3.00 or 3
Company Dept. A Dept B. Predetermined overhead rate per direct labor hour $2.10 $2.40 $1.80 Direct labor hours hours worked on Job ABC 40 18 22 Based on this information, the overhead applied to Job ABC using multiple predetermined overhead rates is $ ____________
Blank 1: 82.80
Company Dept. A Dept B. Predetermined overhead rate per direct labor hour $2.10 $2.40 $1.80 Direct labor hours hours worked on Job ABC 40 18 22 Based on this information, the overhead applied to Job ABC using multiple predetermined overhead rates is $ ______________
Blank 1: 82.80
Overhead application is the process of ______. calculating a predetermined overhead rate assigning manufacturing overhead cost to jobs adjusting accounts for the difference between applied and actual overhead calculating the total cost of a job
assigning manufacturing overhead cost to jobs
The document that records the materials, labor, and manufacturing overhead costs charged to a job is the ______. materials requisition form job cost sheet time ticket production order
job cost sheet Reason: The materials requisition form specifies the type and quantity of materials to be drawn from the storeroom and indicates the job to be charged. Reason: Time tickets show an hour-by-hour summary of an employees activities throughout the day. Reason: The production order indicates quantity, sale price and shipment dates for a particular order.
When compared to a departmental approach, using activity-based costing results in ______ overhead rates. less more the same number of
more
The average manufacturing overhead cost per unit tends to ______. remain fairly constant contain direct materials costs be more than direct materials cost per unit vary from one period to the next
vary from one period to the next
Job XYZ has a total manufacturing cost of $600. If the mark-up percentage is 40%, the job will sell for $ ___________________
Blank 1: 840 $840 ($600 + ($600x40%) = $840)
One reason to use a predetermined overhead rate is to eliminate the effect of seasonal factors. True False
True Reason: For example, if actual rates were used, costs may be higher in summer and winter than in spring or fall due to heating and cooling costs.
Smith, Inc. uses a job-order costing system with the predetermined overhead rate of $12 per machine-hour. The job cost sheet for Job #42A listed $12,000 in direct labor cost, $18,000 in direct materials cost, 1,200 direct labor-hours and 1,100 machine-hours. The total cost of Job #42A is $ __________________
Blank 1: 43,200 or 43200 Total cost of Job $42A = Direct materials + Direct labor + Predetermined overhead rate x Actual machine-hours = $18,000 + $12,000 + ($12 per machine-hour x 1,100 machine-hours) = $43,200
Select all that apply A bill of materials contains the ______. type of materials to be drawn from the storeroom quantity of materials to be drawn from the storeroom type of each direct material needed to complete a unit of product quantity of each direct material needed to complete a unit of product
type of each direct material needed to complete a unit of product quantity of each direct material needed to complete a unit of product
Why do companies use a predetermined overhead rate rather than an actual overhead rate? An actual overhead rate is not known until the end of the period. An actual overhead rate can never be calculated. A predetermined overhead rate is easier to use. A predetermined overhead rate is more accurate.
An actual overhead rate is not known until the end of the period.
The total cost of a job is calculated by adding the total of direct labor cost, direct materials cost and ______. applied manufacturing overhead cost actual manufacturing overhead cost applied manufacturing overhead cost and applied nonmanufacturing cost actual manufacturing overhead cost, and applied nonmanufacturing cost
applied manufacturing overhead cost
SPL Enterprises assigns overhead based on number of machine hours. For the upcoming year, they plan to use a total of 250,000 machine hours and 50,000 direct labor hours. Total overhead cost is expected to be $500,000. The predetermined overhead rate per machine hour is $ ___________________
Blank 1: 2 or two
True or false: When a company uses cost-plus pricing, they consider both the costs of production and the desired profit. True False
False
The total cost of a job is calculated by adding the total of direct labor cost, direct materials cost and ______. applied manufacturing overhead cost actual manufacturing overhead cost, and applied nonmanufacturing cost applied manufacturing overhead cost and applied nonmanufacturing cost actual manufacturing overhead cost
applied manufacturing overhead cost
Company Dept. A Dept B. Predetermined overhead rate per direct labor hour $2.10 $2.40 $1.80 Direct labor hours hours worked on Job ABC 40 18 22 Based on this information, the overhead applied to Job ABC using multiple predetermined overhead rates is $
Blank 1: 82.80
Jones Company uses a job-order costing system with a predetermined overhead rate of 120% of direct labor cost. The job cost sheet for Job #420 showed that Jones Company spent $4,000 on direct materials and $5,000 on direct labor on the job. What is the total cost of Job #420? $10,000 $11,000 $9,000 $15,000
$15,000 Reason: Direct materials + Direct labor + Predetermined overhead rate × Direct labor cost = $4,000 + $5,000 + 120% × $5,000 = $15,000
Jones Company uses a job-order costing system with a predetermined overhead rate of 120% of direct labor cost. The job cost sheet for Job #420 showed that Jones Company spent $4,000 on direct materials and $5,000 on direct labor on the job. What is the total cost of Job #420? $9,000 $10,000 $11,000 $15,000
$15,000 Reason: Direct materials + Direct labor + Predetermined overhead rate × Direct labor cost = $4,000 + $5,000 + 120% × $5,000 = $15,000
Company Dept. A Dept B. Estimated manufacturing overhead $500,000 $338,000 $162,000 Estimated direct labor cost $250,000 $130,000 $120,000 Actual manufacturing overhead $720,000 $400,000 $320,000 Actual direct labor cost $300,000 $160,000 $140,000 Based on this information, the predetermined overhead rate per direct labor dollar for Dept. A is ______.
$2.60 Reason: This is the actual overhead rate. The predetermined rate is based on estimated amounts. $2.00 Reason: This is the plantwide rate Reason: $338,000 ÷ $130,000 = $2.60
Company Dept. A Dept B. Estimated manufacturing overhead $500,000 $338,000 $162,000 Estimated direct labor cost $250,000 $130,000 $120,000 Actual manufacturing overhead $720,000 $400,000 $320,000 Actual direct labor cost $300,000 $160,000 $140,000 Based on this information, the predetermined overhead rate per direct labor dollar for Dept. A is
$2.60 Reason: $338,000 ÷ $130,000 = $2.60
Company Dept. A Dept B. Estimated manufacturing overhead $500,000 $338,000 $162,000 Estimated direct labor cost $250,000 $130,000 $120,000 Actual manufacturing overhead $720,000 $400,000 $320,000 Actual direct labor cost $300,000 $160,000 $140,000 Based on this information, the predetermined overhead rate per direct labor dollar for Dept. A is ______. $2.40 $2.60 $2.50 $2.00
$2.60 Reason: $338,000 ÷ $130,000 = $2.60
Murphy Manufacturing estimated total manufacturing overhead for the year to be $100,000 and that 5,000 direct-labor hours would be used. Actual overhead was $120,000 and actual direct labor-hours were 7,500. The overhead applied to a job completed during the year that used 200 direct labor-hours was ______. $4,800 $100,000 $3,200 $4,000
$4,000 Reason: The predetermined overhead rate = $100,000 ÷ 5,000 direct labor-hours = $20 per direct labor-hour × 200 direct labor-hours = $4,000. $4,000
Company Dept. A Dept B. Estimated manufacturing overhead $500,000 $338,000 $162,000 Estimated direct labor cost $250,000 $130,000 $120,000 Actual manufacturing overhead $720,000 $400,000 $320,000 Actual direct labor cost $300,000 $160,000 $140,000 Based on this information, the predetermined overhead rate per direct labor dollar for Dept. B is $ ______
Blank 1: 1.35
Company Dept. A Dept B. Estimated manufacturing overhead $500,000 $338,000 $162,000 Estimated direct labor cost $250,000 $130,000 $120,000 Actual manufacturing overhead $720,000 $400,000 $320,000 Actual direct labor cost $300,000 $160,000 $140,000 Based on this information, the predetermined overhead rate per direct labor dollar for Dept. B is $ ________________
Blank 1: 1.35
Company Dept. A Dept B. Estimated manufacturing overhead $500,000 $338,000 $162,000 Estimated direct labor cost $250,000 $130,000 $120,000 Actual manufacturing overhead $720,000 $400,000 $320,000 Actual direct labor cost $300,000 $160,000 $140,000 Based on this information, the predetermined overhead rate per direct labor dollar for Dept. B is $ _________________
Blank 1: 1.35
Estimated manufacturing overhead $450,000 Estimated direct labor hours 150,000 Actual manufacturing overhead $405,000 Actual direct labor hours 180,000 Based on this information, the amount of overhead allocated to a job that used 300 direct labor hours is $ ______________
Blank 1: 900
Estimated manufacturing overhead $450,000 Estimated direct labor hours 150,000 Actual manufacturing overhead $405,000 Actual direct labor hours 180,000 Based on this information, the amount of overhead allocated to a job that used 300 direct labor hours is $ _______________
Blank 1: 900
All manufacturing costs are assigned to units of product and all nonmanufacturing costs are treated as period cost under ___________ costing.
Blank 1: absorption or full
When a predetermined markup is applied to a base to determine the target selling price, the company is using _______________-__________________ pricing.
Blank 1: cost Blank 2: plus
Labor costs that are easily traced to a job are called ___________ labor costs.
Blank 1: direct or touch
Why is the unit product cost different from the cost that would be incurred if another (additional) unit were produced? The unit product cost is an average, not an incremental cost. The predetermined overhead rate changes with each unit produced. The cost that would be incurred if another unit were produced cannot be calculated. There would be no additional cost to produce another unit.
The unit product cost is an average, not an incremental cost.
One reason to use a predetermined overhead rate is to eliminate the effect of seasonal factors. True False
True
An allocation base should be ______. direct labor hours a cost object a cost driver machine hours
a cost driver
An allocation base should be ______. machine hours direct labor hours a cost object a cost driver
a cost driver
A cost driver is ______. a factor that causes overhead costs to occur a measure that is used to assign overhead costs to products and services something you want to know the cost of the amount of overhead assigned to a job
a factor that causes overhead costs to occur
Cost-plus pricing occurs when ______. a markup percentage is added to the cost of a job non-manufacturing costs are added to manufacturing costs the cost of the job is multiplied by 2
a markup percentage is added to the cost of a job
The adjustment for overapplied overhead ______ net income. decreases both cost of goods sold and increases cost of goods sold and decreases decreases cost of goods sold and increases increases both cost of goods sold and
decreases cost of goods sold and increases
When a company uses a departmental approach rather than a plantwide approach to applying overhead, the selling price of the product will always be ______. lower the same higher different
different
Select all that apply The total cost of a job includes ______. direct labor cost nonmanufacturing cost actual manufacturing overhead applied manufacturing overhead direct materials cost
direct labor cost applied manufacturing overhead direct materials cost
To calculate a predetermined overhead rate, divide estimated total manufacturing overhead by the ______. estimated units of production actual total manufacturing overhead estimated total direct labor hours estimated total allocation base
estimated total allocation base
The formula for a predetermined overhead rate is ______. estimated total manufacturing overhead cost ÷ estimated total allocation base estimated total allocation base ÷ estimated total manufacturing overhead cost actual total manufacturing overhead cost ÷ actual total allocation base actual total allocation base ÷ actual total manufacturing overhead cost
estimated total manufacturing overhead cost ÷ estimated total allocation base
A predetermined overhead rate is calculated by dividing the ______ total manufacturing overhead by the ______ total allocation base. actual; estimated estimated; actual estimated; estimated actual; actual
estimated; estimated
A predetermined overhead rate is calculated by dividing the ______ total manufacturing overhead by the ______ total allocation base. actual; estimated estimated; estimated actual; actual estimated; actual
estimated; estimated
