Predetermined manufacturing overhead rate

Predetermined manufacturing overhead rate is the rate used to allocate manufacturing overhead to individual jobs; calculated before the year begins as follows: total estimated manufacturing overhead costs divided by total estimated amount of allocation base.

Definitions

According to Managerial Accounting by Braun, Tietz (5th edition),

Predetermined manufacturing overhead rate. The rate used to allocate manufacturing overhead to individual jobs; calculated before the year begins as follows: total estimated manufacturing overhead costs divided by total estimated amount of allocation base.