Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

Fundamental Accounting Equation

Financial Accounting

1. Introduction to Accounting

Fundamental Accounting Equation

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Multiple Choice

How is the predetermined overhead rate calculated in accounting?

By adding estimated direct materials and direct labor costs

By dividing actual manufacturing overhead costs by actual machine hours used

By multiplying actual overhead costs by actual direct labor hours

By dividing estimated total manufacturing overhead costs by estimated total amount of the allocation base

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Verified step by step guidance

Understand the concept of predetermined overhead rate: It is a rate used to allocate manufacturing overhead costs to products or jobs based on an estimated allocation base, such as machine hours or direct labor hours.

Identify the formula for calculating the predetermined overhead rate: The formula is \( \text{Predetermined Overhead Rate} = \frac{\text{Estimated Total Manufacturing Overhead Costs}}{\text{Estimated Total Amount of the Allocation Base}} \).

Determine the components of the formula: The numerator is the estimated total manufacturing overhead costs, which includes costs like factory rent, utilities, and depreciation. The denominator is the estimated total amount of the allocation base, which could be machine hours, direct labor hours, or another relevant base.

Gather the necessary estimates: Obtain the estimated total manufacturing overhead costs and the estimated total amount of the allocation base from the company's budget or forecast data.

Perform the division: Divide the estimated total manufacturing overhead costs by the estimated total amount of the allocation base to calculate the predetermined overhead rate.