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Manufacturers Follow Four Steps to Implement a Manufacturing Overhead Allocation

Question 88

Multiple Choice

Manufacturers follow four steps to implement a manufacturing overhead allocation system. What is the first step?


A) Select an allocation base and estimate the total amount that will be used during the year.
B) Allocate some manufacturing overhead to each individual job.
C) Calculate a predetermined manufacturing overhead rate.
D) Estimate total manufacturing overhead costs for the coming year.

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