The predetermined overhead rate is calculated by
A) Dividing the budgeted activity level of application base by the budgeted total manufacturing overhead.
B) Multiplying the budgeted activity level of application base by the budgeted total manufacturing overhead.
C) Dividing the budgeted total manufacturing overhead by the budgeted activity level.
D) Multiplying the budgeted total manufacturing overhead by the budgeted activity level.
Correct Answer:
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