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    ekettne's Avatar
    ekettne Posts: 2, Reputation: 1
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    #1

    Sep 2, 2009, 11:07 PM
    Predetermined manufacturing overhead rate
    How do I calculate the predetermined manufacturing overhead rate when all the information I have is the following:

    Machine hours
    Indirect materials
    Depreciation on trucks used to deliver uniforms to customers
    Depreciation on plant and equipment
    Indirect manufacturing labor
    Customer service hotline
    Plant utilities
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    Sep 3, 2009, 01:12 AM

    Predetermined overhead rate is:
    Estimated annual overhead costs/estimated annual activity base

    Since the "only" info you seem to have includes machine hours, I'll assume they want the activity base to be machine hours. So your job then is to determine what of those costs are overhead, add them up and then use the equation.

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