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)All of these answer choices are steps in preparing the manufacturing overhead budget.

Question

Quizplus · Accepted Answer

Entering the total estimated overhead from the previous period is not a step in preparing the manufacturing overhead budget, as the budget is typically prepared for a future period based on expected activity levels and costs. Instead, the budget would typically be based on current estimates of overhead costs using a variety of methods, such as historical data, cost drivers, and industry benchmarks. Therefore, choice A is not a step in preparing the manufacturing overhead budget.

Which of the Following Is Not a Step in Preparing