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

Question

Quizplus · Accepted Answer

The predetermined overhead rate is calculated at the beginning of the year, based on the estimated total overhead costs and the estimated allocation base (such as direct labor hours, direct labor cost, or machine hours) for the upcoming year. This allows the company to apply overhead to products or services throughout the year using a consistent rate.

The Predetermined Overhead Rate Is Usually Calculated