## How to compute plantwide predetermined overhead rate

The predetermined overhead rate is based on machine hours. Determine the plantwide overhead rate for Laval using direct labor hours as a base. 2. 28 Sep 2004 The budgeted overhead used to calculate the predetermined rate a plantwide predetermined overhead rate based on direct labor hours. Calculate the predetermined overhead rate by dividing total overhead costs by total direct labor dollars. Allocate overhead to each type of product by multiplying   17 Sep 2019 Compute the plantwide predetermined overhead rate. 2. During the year, Job 400 was started and completed. The following information was  The predetermined overhead rate is calculated as follows (from Chapter 2 "How Is Job Product Costs Using the Plantwide Allocation Approach at SailRite.

## 20 Oct 2019 The predetermined overhead rate's calculation shown in the example above is known as single predetermined overhead rate or plant-wide

### 21 Compute a Predetermined Overhead Rate and Apply Overhead to Production . Job order cost systems maintain the actual direct materials and direct labor for each individual job. Since production consists of overhead—indirect materials, indirect labor, and other overhead—we need a methodology for applying that overhead.

Sometimes a single predetermined overhead rate causes costs to be misallocated. Imagine you are renting an apartment with three friends. The rent is \$600 per month, cable is \$150 per month, and groceries are \$450 per month. You decide to take the \$1,200 cost and divide it evenly by the four of you. That would be […]