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Estimated cost and operating data for three companies for the upcoming year the Predetermined Overhead Rate:
Calculation is attached in the image.
The foreordained overhead charge may be a plantwide overhead fee based on the assessed add as much as overhead fetched and the evaluated upload as much as overhead driver. The charge is utilized to apply overhead costs to employments in a task-order costing framework.
First, we want to determine the predetermined overhead fee:
Predetermined production overhead rate= total envisioned overhead expenses for the period/ overall amount of allocation base.
Now, to calculate the over/under allocation, first, we need to allocate overhead for the entire employer.
allotted MOH= predicted
production overhead fee* real quantity of allocation base.
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