In a Normal Costing System,how Is the Predetermined Fixed Manufacturing

question 17

Multiple Choice

In a normal costing system,how is the predetermined fixed manufacturing overhead rate calculated?

• A)Divide actual fixed manufacturing overhead by the normal (or estimated)activity level.
• B)Divide estimated fixed manufacturing overhead by the actual activity level.
• C)Divide estimated fixed manufacturing overhead by the normal (or estimated)activity level.
• D)Divide actual fixed manufacturing overhead by the actual activity level.

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