Under Which of the Following Circumstances Would the Base Used

question 120

Multiple Choice

Under which of the following circumstances would the base used to calculate the variable overhead rate be the same as that used for the fixed overhead rate?

• A) When actual labor hours are the same as budgeted labor hours
• B) When standard indirect labor hours agree with standard direct labor hours
• C) In most circumstances; the base used for each calculation is normally the same.
• D) When the number of labor hours expected to be incurred for the period is the same as normal capacity direct labor hours

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Definitions:

Minority Group

A group of people who, due to their physical or cultural characteristics, are singled out from the others in the society in which they live for differential and unequal treatment.

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