Answer:
TRUE
Explanation:
[tex]\frac{Cost\: Of \:Manufacturing \:Overhead}{Cost \:Driver}= Overhead \:Rate[/tex]
The expected overhead cost for the period are allocated over a cost driver ussually; labor hours, machine hours or labor cost.
This is done when the company generated their budget for the upcomming period thus, at the beginning of the accounting period.
Then, at year-end or end-of-the-month the company will adjust the overhead against the actual overhead cost.
