COST ACCOUNTING
JOB ORDER COSTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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direct labour costs
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direct labour hour
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machine hours
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any of the above
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Detailed explanation-1: -You can calculate predetermined overhead rate by dividing the manufacturing overhead cost by the activity driver. For example, if the activity driver was machine-hours, then you would divide overhead costs by the estimated number of machine hours.
Detailed explanation-2: -The formula for computing the predetermined manufacturing overhead rate is estimated annual overhead costs divided by an expected annual operating activity, expressed as: direct labor cost.
Detailed explanation-3: -Predetermined overhead rate = Estimated total units in the allocation base ÷ Estimated total manufacturing overhead costsPredetermined overhead rate = Estimated total manufacturing overhead costs ÷ Estimated total units in the allocation base.
Detailed explanation-4: -Manufacturing Overhead Formula To get a percentage, divide by your monthly sales and multiply that number by 100. Here’s the manufacturing overhead equation: Manufacturing Overhead Costs / Number of Sales x 100 = Percentage.