When calculating a departmental overhead rate, what should the numerator be?
A)Total estimated amount of the departmental allocation base
B)Total estimated departmental overhead cost pool
C)Total estimated amount of manufacturing overhead for the factory
D)Actual quantity of the departmental allocation base used by the job

Question

Quizplus · Accepted Answer

The numerator of the departmental overhead rate should be the total estimated departmental overhead cost pool. This represents the total amount of overhead costs that will be allocated to the department based on the chosen allocation base.

When Calculating a Departmental Overhead Rate, What Should the Numerator