A Company May Set Predetermined Overhead Rates Based on Normal,expected

Multiple Choice

A company may set predetermined overhead rates based on normal,expected annual,or theoretical capacity.At the end of a period,the fixed overhead spending variance would

A) be the same regardless of the capacity level selected.
B) be the largest if theoretical capacity had been selected.
C) be the smallest if theoretical capacity had been selected.
D) not occur if actual capacity were the same as the capacity level selected.