A predetermined overhead rate is used to:
A) keep track of actual overhead costs as they are incurred.
B) assign indirect costs to cost objects.
C) establish prices for manufactured products.
D)allocate selling and administrative expenses to manufactured products.

Question

Quizplus · Accepted Answer

A predetermined overhead rate is used to assign indirect costs to cost objects, as it is calculated in advance using estimated totals for the overhead costs and an estimated activity base for the allocation.

A Predetermined Overhead Rate Is Used To