How can the effect of uniform production levels on unit production costs be achieved?

Question

Quizplus · Accepted Answer

Using a factory overhead rate based on long-run normal production activity level helps to achieve uniform production levels and avoid fluctuations in production costs. This method uses a predetermined overhead rate based on expected production levels, which ensures that overhead costs are allocated evenly across all units produced. This allows for stable unit production costs and helps to avoid over or under allocating overhead costs.

How Can the Effect of Uniform Production Levels on Unit