The rate established at the beginning of a period that uses estimated overhead and an allocation factor such as estimated direct labor,and that is used to assign overhead cost to jobs,is the:
A)Predetermined overhead rate.
B)Overhead variance rate.
C)Estimated labor cost rate.
D)Chargeable overhead rate.
E)Miscellaneous overhead rate.

Question

Quizplus · Accepted Answer

The predetermined overhead rate is established at the beginning of a period based on estimated overhead costs and an allocation factor such as estimated direct labor. It is used to assign overhead costs to jobs during the period.

The Rate Established at the Beginning of a Period That