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Unformatted text preview: hours as the allocation base is if the company only manufactures a single product. The labor hours or machine hours are then used in the denominator of the formula as follows: Predetermined Overhead Rate = Estimated total overhead cost / Estimated total units in the allocation base. Source: http://www.accountingformanagement.com/job_order_costing_system.htm...
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This note was uploaded on 03/26/2012 for the course AC505 AC505 taught by Professor Dillan during the Spring '10 term at Keller Graduate School of Management.
- Spring '10