AC202 Week 7 Discussion

AC202 Week 7 Discussion - the beginning of a period that...

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Week 7 Discussion Chap. 23; Q. #9 9. Budgeting promotes good decision making by requiring managers to conduct _______ and by focusing their attention on the _______. Budgeting promotes good decision making by requiring managers to conduct research (or analysis) and by focusing their attention on the future . research (or analysis) future . Chap. 24; Q. #10 10. What is the predetermined standard overhead rate? How is it computed? The glossary in the book defines Predetermined Overhead Rate as The rate established prior to
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Unformatted text preview: the beginning of a period that relates estimated overhead to another variable, such as estimated direct labor, and is used to assign overhead cost to production. "The predetermined rate is often based on some overhead allocation base (such as standard labor cost, standard labor hours, or standard machine hours)." (Wild, Shaw, Chiapetta Pg. 990) The Predetermined Overhead Rate (POHR) is computed by the equation: POHR = Estimated Total Overhead Costs / Estimated Activity...
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This note was uploaded on 11/11/2011 for the course AC 202 taught by Professor Nancyeverett during the Spring '09 term at Park.

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