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  3. Study Set
    Managerial Accounting Study Set 23
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    Exam 2: Job-Order Costing: Calculating Unit Product Costs
  5. Question
    When the Predetermined Overhead Rate Is Based on the Level
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When the Predetermined Overhead Rate Is Based on the Level

Question 225

Question 225

True/False

When the predetermined overhead rate is based on the level of activity at capacity, an item called the Cost of Unused Capacity may appear to be treated as a period expense on income statements prepared for internal management use.

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