The predetermined overhead rate is revised many times during the period to compensate for inaccurate estimates previously made.

Question

Quizplus · Accepted Answer

The predetermined overhead rate is typically set at the beginning of a period and not revised many times; it is based on estimated costs and activity levels, and adjustments for inaccuracies are usually made at the end of the period, not continuously.

The Predetermined Overhead Rate Is Revised Many Times During the Period