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    Introduction to Management Accounting Study Set 1
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    Exam 13: Accounting for Overhead Costs
  5. Question
    The Proration Method of Disposing of an Overhead Variance Prorates
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The Proration Method of Disposing of an Overhead Variance Prorates

Question 125

Question 125

True/False

The proration method of disposing of an overhead variance prorates the variance among three accounts that include Direct Materials Inventory,Work-in-Process Inventory and Finished Goods Inventory.

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