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When the Activity Base Used in Calculating the Predetermined Overhead

Question 107

Multiple Choice

When the activity base used in calculating the predetermined overhead rate is units of output, which of the following also must be known before overhead can be applied to a particular job?


A) Actual overhead incurred during the period
B) Estimated direct labor hours for all jobs during the period
C) Actual units produced for that job
D) Actual units produced for all jobs during the period

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