A predetermined overhead application rateexpresses an, Ask an Expert

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A predetermined overhead application rate:

Expresses an expected relationship between overhead costs and an activity base.

Can be determined by dividing budgeted direct labor cost by the budgeted factory overhead costs.

Is computed at the end of the period once actual overhead costs are known

Applies the same amount of overhead to each product or service.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91672647

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