What is predetermined overhead rate?
Not what you're looking for?
Just when you are starting to grasp the flow of costs from raw materials (direct materials) into work-in-process and then into finished goods, and think you might survive the managerial accounting course, you get hit with the Predetermined Overhead Rate. What?
What is predetermined overhead rate and how do you compute it? How does it lead to over and under applied overhead?
Purchase this Solution
Solution Summary
The tutorial is about a page and discusses why this is hard and how to simplify it. A computation is given as an example.
Solution Preview
Predetermined Overhead Rate
Just when you are starting to grasp the flow of costs from raw materials (direct materials) into work-in-process and then into finished goods, and think you might survive the managerial accounting course, you get hit with the Predetermined Overhead Rate. What?
Manufacturing overhead is rarely booked into work in process (even though you just spent a chapter learning to do this!). Instead, businesses book the "expected" overhead. How do they come up with the expected ...
Education
- BSc, University of Virginia
- MSc, University of Virginia
- PhD, Georgia State University
Recent Feedback
- "hey just wanted to know if you used 0% for the risk free rate and if you didn't if you could adjust it please and thank you "
- "Thank, this is more clear to me now."
- "Awesome job! "
- "ty"
- "Great Analysis, thank you so much"
Purchase this Solution
Free BrainMass Quizzes
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking
MS Word 2010-Tricky Features
These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.
Learning Lean
This quiz will help you understand the basic concepts of Lean.
Operations Management
This quiz tests a student's knowledge about Operations Management
Marketing Research and Forecasting
The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.