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How Is the Predetermined Manufacturing Overhead Rate Used to Allocate

Question 16

Multiple Choice

How is the predetermined manufacturing overhead rate used to allocate manufacturing overhead calculated?


A) By dividing the total estimated manufacturing overhead costs by the total estimated quantity of allocation base
B) By dividing the total estimated quantity of allocation base by the total estimated manufacturing overhead costs
C) By multiplying the total estimated manufacturing overhead costs by the total estimated quantity of allocation base
D) By dividing the total estimated manufacturing overhead costs by the total actual quantity of the allocation base

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