Term
| Equivalent units of production (weighted-average method) |
|
Definition
| Units transferred to the next department or finished goods + Equivalent units in ending work in process inventory |
|
|
Term
| Cost per equivalent unit (weighted average method) |
|
Definition
| (Cost of beginning WIP inventory + Cost added during the period)/Equivalent units of production |
|
|
Term
| Predetermined overhead rate |
|
Definition
| Estimated total manuf. overhead/Estimated total amount of the allocation base |
|
|
Term
|
Definition
| Estimated overhead cost/Total expected activity |
|
|
Term
|
Definition
| Activity rate/# expected setups |
|
|
