Question

Manufacturers follow four steps to implement a manufacturing overhead allocation system. Which step is not performed before the year​ begins? A. Allocate some manufacturing overhead to each individual job. B. Estimate total manufacturing overhead costs for the coming year. C. Calculate a predetermined manufacturing overhead rate. D. Select an allocation base and estimate the total amount that will be used during the year.

Answer 1

The correct answer would be option A) Allocating some manufacturing overhead to each individual job.

Step-by-step explanation:

Manufacturing overhead location is designated on the basis of machine hours, direct labor hours and direct labor costs, all performed during the period. However, prior to the beginning of the period, a predetermined manufacturing overhead rate is computed in order to allocate manufacturing overhead to each individual job later on.

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