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Salman Faris Iddrisu
on Nov 19, 2024

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If a company uses a predetermined overhead rate, actual manufacturing overhead costs of a period will be recorded in the Manufacturing Overhead account and will be recorded on the job cost sheets.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to products, calculated before the accounting period begins based on estimated costs and activity levels.

Manufacturing Overhead

All indirect costs associated with manufacturing, excluding direct materials and direct labor.

  • Grasp the concept and application of predetermined overhead rates in job costing.
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Chasity WatsonNov 21, 2024
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