Predetermined overhead rate

Predetermined overhead rate - Predeterminedoverheadrate

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Predetermined overhead rate Factory overhead costs are allocated to jobs in process using a predetermined overhead rate. The  predetermined overhead rate  is determined by estimating (during the budget process) total factory  overhead costs and dividing these total costs by direct labor hours or direct labor dollars. For  example, assume a company using direct labor dollars for the allocation of overhead estimated its 
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This note was uploaded on 11/15/2011 for the course ACCT 2310 taught by Professor Staff during the Spring '09 term at Texas State.

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