COST ACCOUNTING
MANUFACTURING OVERHEAD
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Estimated total MOH cost / Estimated basis of actual basis
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Actual MOH cost / Estimated basis of actual basis
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Estimated total MOH cost / Actual total MOH cost
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Actual total MOH cost / Estimated total MOH cost
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Detailed explanation-1: -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.
Detailed explanation-2: -The predetermined overhead rate is set at the beginning of the year and is calculated as the estimated (budgeted) overhead costs for the year divided by the estimated (budgeted) level of activity for the year. This activity base is often direct labor hours, direct labor costs, or 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: -Explanation: The plantwide overhead rate is computed by dividing estimated total manufacturing overhead with estimated total quantity of the cost allocation base. A cost allocate base is also commonly referred to as a cost driver.