predetermined overhead rate and how is it computed, accounting homework help

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Business Finance

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Name two reasons why overhead might be under-applied in a given year and how this might be able to be prevented? What is a predetermined overhead rate and how is it computed? What do you feel is the best allocation base to use for the denominator in the predetermined overhead rate calculation and why? What factors would you consider in choosing the allocation base?

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Explanation & Answer

Attached.

Running Head: ACCOUNTING OVERHEAD

Accounting Overhead
Institution Affiliation
Date:

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ACCOUNTING OVERHEAD

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In essence, accounting overhead involves the costs any other costs that appear on the
income statement and increases the amount of the normal labor as well as material and direct
expenses that must be involved in every process. These costs include such as the different kind
of fees and bills as well as expenditures on diffe...


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