Asked by

Melissa Manzano
on Nov 13, 2024

verifed

Verified

Companies assign manufacturing overhead to work in process on an estimated basis through the use of a(n)

A) actual overhead rate.
B) estimated overhead rate.
C) assigned overhead rate.
D) predetermined overhead rate.

Predetermined Overhead Rate

A predetermined overhead rate is used to allocate indirect costs to products or services based on a predetermined formula.

Manufacturing Overhead

All indirect costs related to the manufacturing process, such as salaries of supervisors, rent of the factory, and utilities, which cannot be directly traced to specific units produced.

Work in Process

Inventory that includes goods that are in the process of being produced but are not yet completed.

  • Ascertain preset overhead rates and apportion overhead to costs involved in manufacturing.
verifed

Verified Answer

CM
Cassidy MooreNov 14, 2024
Final Answer:
Get Full Answer