Which of the Following Statements Is Incorrect

question 86

Multiple Choice

Which of the following statements is incorrect?

• A) A predetermined overhead rate may be used to allocate overhead costs when volume varies during the year.
• B) A predetermined overhead rate is calculated using actual cost and volume data.
• C) A predetermined overhead rate is calculated by dividing costs by volume, using a measure of volume such as direct labor hours or direct materials cost.
• D) A company may need to allocate overhead costs to products to make pricing decisions for the products.

---

Definitions:

Hourly Wage

The amount of money paid for each hour of work.

Uglifruits

This term does not represent a known economic concept. NO.

Consumption Proportions

This term refers to the ratio in which different goods or services are consumed by individuals or within an economy.

Price Change

A fluctuation in the market price of a good or service over a specific period.