## Predetermined overhead rate cost driver

Predetermined Overhead Rate is the overhead rate that use as the basis to apply rather than Estimate Annual Total Production in Unit if those cost drivers are  Jul 24, 2018 Instead, several cost drivers are used as the overhead costs are is to compute the predetermined overhead rate for each of the cost drivers. Actual overhead costs are any indirect costs related to completing the job or of the cost driver for the job D. Second, we would calculate the predetermined

1. Compute the firm's predetermined overhead rate for the year using each of the following common cost drivers: (a) machine hours, (b) direct-labor hours, and (c) direct-labor dollars. 2. Calculate the overapplied or underapplied overhead for the year using each of the cost drivers listed above. Required Information Exercise 3-35 Predetermined Overhead Rate; Varlous Cost Drivers (LO 3.4) The following information applies to the questions displayed below. Sometimes a single predetermined overhead rate causes costs to be misallocated. Imagine you are renting an apartment with three friends. The rent is \$600 per month, cable is \$150 per month, and groceries are \$450 per month. You decide to take the \$1,200 cost and divide it evenly by the four of you. That would be \$300 each. A. Cost Driver** B. Manufacturing cost C. Cost Object D. Predetermined Overhead rate. A multiple predetermined overhead rate system is more accurate than a plant wide overhead rate system because it: reflects differences in how overhead costs are incurred within departments.