Notice that this information includes an estimate of the level of activity for each cost driver, which is needed to calculate a predetermined rate for each activity in step 4. Step 4. Calculate a predetermined overhead rate for each activity. In cost accounting, the single rate cost allocation method uses one cost rate to dictate the dollars that are allocated from a cost pool to a unit, batch, department, or division. In the case of support departments, the rate allocates dollars to another department or division. The single rate method doesn’t distinguish between fixed and […] In a job order costing system, a cost driver rate is used to apply direct manufacturing costs to a specific product. True In a normal job order costing system even though the cost driver rate is based on estimates, overhead costs are applied to products based on actual levels of activity.