ECONOMICS

Detailed explanation-1: -Answer and Explanation: A predetermined overhead rate is an overhead rate that is estimated by the company at the start of the operating period. Hence, it is computed by dividing the estimated manufacturing overhead cost by the estimated total units of allocation based.

Detailed explanation-2: -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-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: -Total Manufacturing Costs (TMC) = Direct Materials + Direct Labor + Manufacturing Overheads. It takes much more than knowing the formula to calculate total manufacturing costs correctly. This article will look at total manufacturing costs, calculate their parts, and reduce some charges in a business.

Detailed explanation-5: -The formula for computing the predetermined overhead rate is: Predetermined overhead rate = Estimated total manufacturing overhead cost Estimated total amount of the allocation base.