Generally speaking, manufacturing overhead is applied to production by means of a , which is computed under the general formula of dividingby some measure of the .

means of a predetermined overhead rate, which is computed Estimated manufacturing overhead

By some measure of  the Annual activity level

Explanation:

Manufacturing overhead is applied to production by means of a predetermined overhead rate which is computed under the general formula of dividing estimated manufacturing overhead by some measure of the annual activity level

The manufacturing overhead costs are indirect costs incurred by a business/company in the production process. these costs are classified as overhead costs because they do not affect the production of the goods and services directly they include costs like : rent and administrative costs.

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