Which costing methodology derives a rate for applying overhead to units produced before the production period,then uses this "predetermined rate" in applying overhead to each unit as they produces it?

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Normal costing is a costing methodology that derives a predetermined rate for applying overhead to units produced before the production period begins. This predetermined rate is then used to apply overhead to each unit as they produce it. Normal costing is a widely used costing methodology that is relatively simple to implement and provides a good estimate of costs.

Which Costing Methodology Derives a Rate for Applying Overhead to Units