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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 |
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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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