Predetermined Overhead Rates Are Used Because

question 97

Multiple Choice

Predetermined overhead rates are used because:

• A) Total manufacturing overhead costs are not known until year-end
• B) Manufacturing overhead benefits many products and therefore cannot be directly assigned
• C) Both total manufacturing overhead costs are not known until year-end and manufacturing overhead benefits many products and therefore cannot be directly assigned
• D) Neither total manufacturing overhead costs are not known until year-end nor manufacturing overhead benefits many products and therefore cannot be directly assigned

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Definitions:

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