When is the predetermined overhead rate usually calculated?
A) at the end of the year
B) at the end of each month
C) at the beginning of the year
D) at the beginning of each month

Question

Quizplus · Accepted Answer

The predetermined overhead rate is usually calculated at the beginning of the year when the budgeted overhead costs and estimated activity levels for the upcoming year are known. This rate is then used throughout the year to allocate overhead costs to products or services.

When Is the Predetermined Overhead Rate Usually Calculated