Which of the following is not a step in preparing the manufacturing overhead budget?
A)Enter the total estimated overhead from the previous period.
B)Calculate the variable overhead cost per period using the variable rate and the budgeted activity base.
C)Subtract the non-cash overhead items from the total overhead cost to determine cash payments for overhead.
D)Calculate the total overhead cost for the period by adding the fixed and variable overhead costs.

Question

Quizplus · Accepted Answer

Entering the total estimated overhead from the previous period is not a step in preparing the manufacturing overhead budget. Instead, the budgeted overhead should be based on expected activity levels and cost drivers for the upcoming period.

Which of the Following Is Not a Step in Preparing