Which of the Following Statements Is True Concerning a Normalized

Multiple Choice

Which of the following statements is true concerning a normalized overhead rate?

A) A normalized overhead rate should be used whenever the firm does not prepare a master budget.
B) A normalized overhead rate is employed so that wide fluctuations and variations in the level of production will not influence unit costs.
C) A normalized overhead rate is used by firms that have a normal production schedule.
D) A normalized overhead rate results in distorting the income figures of the firm.