The rate established at the beginning of a period that uses estimated overhead and an allocation factor such as estimated direct labor,and that is used to assign overhead cost to jobs,is the:

A) Predetermined overhead rate.
B) Overhead variance rate.
C) Estimated labor cost rate.
D) Chargeable overhead rate.
E) Miscellaneous overhead rate.

Predetermined Overhead Rate

An estimated overhead rate used to allocate manufacturing overhead costs to products or job orders based on a selected activity base, such as direct labor hours.

Estimated Overhead

Projected costs of indirect materials, labor, and other expenses that are necessary for production but are not directly traceable to specific products.

Allocation Factor

A criterion or formula used to distribute costs or revenues among various departments, products, or projects based on relevant measures such as time, usage, or volume.