QQuestionAccounting
QuestionAccounting
"The predetermined overhead rate is usually calculated:
Question 10Select one:
a. at the end of each month
b. at the beginning of each month
c. at the beginning of the year
d. at the end of the year"
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Answer
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Step 1: Identify the correct time to calculate the predetermined overhead rate
The predetermined overhead rate is typically calculated at the beginning of the accounting year. This is because the rate is used to apply overhead costs to production activities throughout the year. By setting the rate at the beginning of the year, companies can maintain consistency and make more accurate financial predictions.
Final Answer
c. at the beginning of the year
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