Asked by Caitlin Minton on Apr 25, 2024

The predetermined overhead rate is closest to:

A) $2.80 per direct labor-hour
B) $6.40 per direct labor-hour
C) $3.60 per direct labor-hour
D) $9.20 per direct labor-hour

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate estimated overhead costs to specific activities based on a chosen base.

  • Learn to ascertain the predetermined overhead rate by means of various bases such as direct labor-hours and machine-hours.