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when is the predetermined manufacturing overhead rate computed
A pre-determined overhead rate is the rate used to apply manufacturing overhead to work-in-process inventory. The pre-determined overhead rate is calculated before the period begins.
how is the pre-determined overhead rate computed
The first step of the pre-determined overhead rate is to estimate the amount of the activity base that will be required to support operations in the upcoming period.
what is the second step of the pre-determined overhead rate after estimating the amount of the activity base that will be required to support operations in the upcoming period
The second step of the pre-determined overhead rate is to estimate the total manufacturing cost at that level of activity.
what is the third step of the pre-determined overhead rate after estimating the total manufacturing cost at that level of activity
The third step is to compute the predetermined overhead rate by dividing the estimated total manufacturing overhead costs by the estimated total amount of cost driver or activity base.

Question: what are commonly used activity bases
Self-contained rewrite: what are commonly used activity bases for the pre-determined overhead rate