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The rate established before the start of a period that uses estimated overhead costs and an estimated activity base such as estimated direct labor, and that is used to apply estimated overhead to jobs, is the:

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The rate established before the start of an accounting period that is used to apply estimated overhead to jobs, is the: Predetermined Overhead Rate.

What is the Predetermined Overhead Rate?

The Predetermined Overhead Rate is a calculation that is performed at the beginning of an accounting period. It is intended to the standard price of a product.

The calculation is performed by obtaining the estimated manufacturing overhead and dividing this by the estimated base of activity.

Learn more about the Predetermined Overhead Rate here:

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