A firm's actual overhead cost and actual activity volume are likely to remain relatively constant from month to month, thus fluctuations in overhead rates remain relatively constant.

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Actual overhead costs and actual activity volume can vary from month to month, resulting in fluctuations in overhead rates. Changes in production levels, staffing, and material costs can all impact overhead costs and activity volume. Therefore, fluctuations in overhead rates may also vary from month to month.

A Firm's Actual Overhead Cost and Actual Activity Volume Are