Question: What is a predetermined overhead rate , and how is it computed? Why do companies use a predetermined overhead rate rather than actual overhead costs

What is a predetermined overhead rate, and how is it computed?

Why do companies use a predetermined overhead rate rather than actual overhead costs to apply overhead to jobs?

What factors should be considered when selecting a base to be used in calculating the predetermined overhead rate?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

Assume that the projects profitability will be similar to IBMs existing projects in the latest fiscal year and estimate (revenues - costs) each year by using the latest EBITDA/Sales profit margin....

Q:

What is a predetermined overhead rate, and how is it computed? Why do companies use a predetermined overhead rate rather than actual overhead costs to apply overhead to jobs? Explain why some...

Q:

Assume the transactions and be Raw Material Purchased $ 160,000 90.000 Direct Labor Manufacturing Overhead - Actual Manufacturing Overhead - Applied 137.500 135,000 Raw Materials Work in Process...

Q:

In December 2016, Infodeo established its predetermined overhead rate for movies produced costs, $480,000. At year-end 2017, the company's records show that actual overhead costs for the year are...

Q:

I have started subscribing from an App yesterday. but out of 3 questions I sent yesterday, I didn't get an answer. Please assist me with this question, but however I have concern about the...

Q:

Questions 1 - 20 Multiple Choice. Circle the letter corresponding to the best answer. 1. The major activities of managerial accounting include all of the following except: (a) providing a basis for...

Q:

1. Activity Levels Determine the appropriate level for each of the following activities or costs. Indicate whether the activity is unit-level (UL), batch-level (BL), product-level (PL),...

Q:

Problem \#1: Job-Order Costing ( 60 points) Mahomes Custom Sports Supplies Mig. Co. uses a job-order cost system to accumulate product costs and traditional normal costing to apply overhead using a...

Q:

Answer to these questions please. 1. Why aren't actual manufacturing overhead costs traced to jobs just as direct materials and direct labor costs are traced to jobs? 2. What is the predetermined...

Q:

1. Required information Problem 15-1A Production costs computed and recorded; reports prepared LO P1, P2, P3, P4 [The following information applies to the questions displayed below. ] Marcelino Co.'s...

Q:

Required information The fowlowing information applies to the questions displayed below! Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. It started...

Q:

A plan view of a deck slab supported by beams and girders is shown below. Beams AD, DE, EH, and AH are connected to the columns. There is a load of 50 psf over the entire deck. For this 50 psf load:...

Q:

Which of the following compounds would be expected to decarboxylate when heated? a. b. c. d. OH HO

Q:

Represenativeness, or enternal validing, refers to the generalicablity of the findings to the population from which the data have been taken. True False Gezersetegins

Q:

For the beam and loading shown, cosider section and determine (a) the largest shearing stress in (b) shearing stress at point a: the that section.

Q:

An asphalt core was extracted from a paving project. The following measurements were obtained in the field. Weight dry in air = 1298.37 gm. Weight submerged in water = 778.94 gm. Required % asphalt...

Q:

Following is Hartzbergs latest income statement. The company produced and sold 100,000 units during the year. Sales (100,000 units at $50) $5,000,000 Cost of goods sold: Direct material $1,500,000...

Q:

Darth Company sells three products. Sales and contribution margin ratios for the three products follow: Product X Product Y Product Z Sales in dollars $24,000 $44,000 $104,000 Contribution margin...

Q:

Emille Corp has a selling price of $20 per unit, variable costs of $10 per unit, and fixed costs of $100,000. How many units must be sold to break even?

Q:

formulate a suitable title for the proposed study of esg

Q:

4 What does a competency- based approach to training and development entail?

Q:

6 Compare and contrast mentoring and coaching.

Q:

1 Coaching can be very effective as a form of individual development. What should companies do to ensure that the learning that occurs is helpful for the group and organisation as a whole? During the...