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A predetermined manufacturing overhead rate can be based on each of the following except direct labor...

A predetermined manufacturing overhead rate can be based on each of the following except direct labor hours. number of units. machine hours. direct labor costs

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Answer #1

The Answer is “Number of Units”

- A predetermined manufacturing overhead rate can be computed based on either direct labor hours or machine hours or direct labor costs.

- A predetermined manufacturing overhead rate is the amount of indirect manufacturing cost to be charged to each unit of production.

- Predetermined Manufacturing overhead rate is a budgeted manufacturing cost per unit of activity

- The Number of Units shall not be considered in activity base for calculating the Predetermined Manufacturing Overhead rate

- Predetermined Manufacturing Overhead rate = Estimated Total Manufacturing Overhead costs / Estimated Total Amount or number of hours in the allocation base

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