All of the Following Are True About Using a Predetermined

question 209

Multiple Choice

All of the following are true about using a predetermined overhead rate to apply overhead except,

• A)Estimates are used to calculate the rate.
• B)Using this rate provides managers with up-to-date estimates of the costs of their processes during the period.
• C)A single allocation basis may fail to provide useful allocations for all production departments.
• D)The rate is prepared at the beginning of the period.
• E)The rate is used to apply overhead at the end of the accounting period.

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