Question

Predetermined overhead rates are calculated at the end of the accounting period once the actual amount of factory overhead is known

Answer 1

False

Step-by-step explanation:

Predetermined overhead rate is a term that describes a form of rate utilized when assigning manufacturing overhead to work-in-process supply. However, in order to derive the predetermined overhead rate, this is calculated at the inception of the term so that labors cost can be measured throughout the period instead of determining it at the end of the period.

Hence, in this case, it can easily be concluded that the statement in the question is FALSE.