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A job order cost system uses a predetermined overhead rate based on estimated activity and estimated manufacturing overhead cost. At the end of the year,
A job order cost system uses a predetermined overhead rate based on estimated activity and estimated manufacturing overhead cost. At the end of the year, underapplied overhead might be explained by which of the following situations?
Actual activity Actual manufacturing overhead costs
A) Greater than estimated Greater than estimated
B) Greater than estimated Less than estimated
C) Less than estimated Greater than estimated
D) Less than estimated Less than estimated
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