If an actual monthly overhead rate were used to cost products rather than a predetermined rate based on yearly estimates, which of the following would be true?
A) Costs per unit would increase in months where production was greater.
B) Costs per unit would likely be more relevant, because they would reflect actual price fluctuations in the sources of overhead.
C) Costs per unit would probably not fluctuate very much.
D) Costs per unit would increase in months where overhead costs where higher.
E) A and B are both true.
Correct Answer:
Verified
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