Indicate how the predetermined overhead rate is determined and used

Indicate how the predetermined overhead rate is determined and used

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Indicate how the predetermined overhead rate is determined and used. The predetermined overhead rate is based on the relationship between estimated annual overhead costs and expected annual operating activity.
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Unformatted text preview: This is expressed in terms of a common activity base, such as direct labor cost. Companies use this rate to assign overhead costs to work in process and to specific jobs....
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