Question 1

A company predicts overhead for next year of $1,000,000. They also predict that they will make 1,000,000 widgets. The predetermined overhead rate is

Group of answer choices

$1 per widget

$1,000,000

not enough information is provided

1%

Question 2

To determine the predetermined overhead rate, you will need

Group of answer choices

estimated overhead

estimated sales

estimated profit

Question 3

Why do I need a predetermined overhead rate?

Group of answer choices

for tax reasons

to evenly distribute overhead over my goods

to compute my overhead costs