If a company multiplies its actual overhead rate by the actual activity level of its allocation base,it is using

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Multiplying the actual overhead rate by the actual activity level of its allocation base is a characteristic of actual costing, which uses actual costs incurred during production. Standard costing uses predetermined cost estimates, normal costing uses a predetermined overhead rate based on historical data, budget costing uses estimated costs for a future period, and ideal costing is a theoretical approach that uses optimal cost estimates.

If a Company Multiplies Its Actual Overhead Rate by the Actual