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Manufacturers Follow Four Steps to Implement a Manufacturing Overhead Allocation

Question 103

Multiple Choice

Manufacturers follow four steps to implement a manufacturing overhead allocation system. The first step is to


A) select an allocation base and estimate the total amount that will be used during the year.
B) allocate some manufacturing overhead to each individual job.
C) estimate total manufacturing overhead costs for the coming year.
D) calculate a predetermined manufacturing overhead rate.

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