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In a Normal Costing System,how Is the Predetermined Fixed Manufacturing

Question 17

Multiple Choice

In a normal costing system,how is the predetermined fixed manufacturing overhead rate calculated?


A) Divide actual fixed manufacturing overhead by the normal (or estimated) activity level.
B) Divide estimated fixed manufacturing overhead by the actual activity level.
C) Divide estimated fixed manufacturing overhead by the normal (or estimated) activity level.
D) Divide actual fixed manufacturing overhead by the actual activity level.

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