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2 February, 23:48

The predetermined overhead rate is multiplied by the actual allocation base incurred by a job to find:

a. actual overhead

b. overhead applied to the job

c. the predetermined overhead rate for the job

d. the total cost of the job

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Answers (1)
  1. 2 February, 23:59
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    Answer:B. overhead applied to the job

    Explanation:Applied overhead is the amount of overhead that has been applied to a cost object, in a well performing large business, an applied overhead of 35% of total revenue is considered to be favourable.

    The major reason which causes Organisations to make use of a predetermined overhead rate is to assign manufacturing overhead costs to jobs based on certain Regular activities, these activities are; direct labor work hours, machine run time (in hours), or direct labor costs etc.
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