The estimates used to calculate the predetermined overhead rate:
A) will generally prove to be incorrect to some degree.
B) will usually result in a non-zero balance left in the manufacturing overhead account at the end of the year.
C) are likely to result in either overapplied or underapplied overhead.
D) All of the given answers.

Question

Quizplus · Accepted Answer

The estimates used to calculate the predetermined overhead rate are just estimates and may not be accurate, which may result in overapplied or underapplied overhead. Therefore, all of the given answers (A, B, and C) are correct.

The Estimates Used to Calculate the Predetermined Overhead Rate