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  3. Study Set
    Managerial Accounting Study Set 14
  4. Exam
    Exam 6: The Predetermined Overhead Rate and Capacity
  5. Question
    When the Predetermined Overhead Rate Is Based on the Level
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When the Predetermined Overhead Rate Is Based on the Level

Question 8

Question 8

True/False

When the predetermined overhead rate is based on the level of activity at capacity, underapplied manufacturing overhead may be called the Cost of Unused Capacity and treated as a period expense.

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