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Which of the Following Is the Correct Method to Calculate

Question 2

Multiple Choice

Which of the following is the correct method to calculate a predetermined overhead rate?


A) Budgeted total manufacturing cost/budgeted amount of cost driver.
B) Budgeted overhead cost / budgeted amount of cost driver.
C) Budgeted amount of cost driver / budgeted overhead cost.
D) Actual overhead cost /budgeted amount of cost driver.
E) Actual overhead cost / actual amount of cost driver.

Correct Answer:

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