If the company underestimates the amount of allocation base when calculating its predetermined manufacturing overhead rate but

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If the company underestimates the amount of allocation base when calculating its predetermined manufacturing overhead rate but estimates the amount of manufacturing overhead correctly, the amount of manufacturing overhead allocated for the year will be

a. underallocated.

b. overallocated.

c. exactly equal to the actual manufacturing overhead for the year.

d. unable to be determined from the information provided.

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Managerial Accounting

ISBN: 12

2nd Edition

Authors: Karen Braun, Linda S Bamber

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