Biology Forums - Study Force

Which of the following statements are true?

1. The formula for computing the predetermined overhead rate is: Predetermined overhead rate = Estimated total amount of the allocation base ÷ Estimated total manufacturing overhead cost

2. Generally speaking, when going through the process of computing a predetermined overhead rate, the estimated total manufacturing overhead cost is determined before estimating the amount of the allocation base.

▸ Only statement I is true.

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Only statement II is true.

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Both of the statements are true.

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Neither of the statements are true.

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