Manufacturing Overhead Application
{"Image DocumentName": "Manufacturing Overhead Application", "Image ImageDescription": "3-13. Manufacturing Overhead Application. The predetermined overhead rate (POHR) used to apply overhead to jobs is determined before the period begins. Estimated total manufacturing overhead cost for the coming period. Estimated total units in the allocation base for the coming period. POHR = To facilitate the allocation of manufacturing overhead to each job, we calculate a predetermined overhead rate before the period begins. The rate is calculated by dividing the total estimated manufacturing overhead for the coming period by the estimated total units of the allocation base. If our allocation base is machine hours, we would estimate the total number of machine hours used in production in the coming period. Ideally, the allocation base should be a cost driver, that is, it causes overhead to be incurred. Ideally, the allocation base is a cost driver that causes overhead.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}