Question

Overhead is usually calculated:

a
tracking each indirect labor worker
b
estimating the cost using a rate
c
identifying the material waste not used in production
d
by knowing the direct product cost

Answer 1

Estimating the cost using a rate

Step-by-step explanation:

Overhead cost are the cost portion of a product that can re bot directly linked to a particular cost unit. In other words , overhead can be referred to as general expenses incurred in production.

Going by its nature , its allocation to a unit of production is not direct and it involves a bit of analysis and calculation . therefore , one of the ways of calculating overhead is by estimating the cost using a rate