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All of the following are true about using a predetermined overhead rate to apply overhead except, Multiple Choice Estimates are used to calculate the rate.

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All of the following are true about using a predetermined overhead rate to apply overhead except, Multiple Choice Estimates are used to calculate the rate. X Using this rate provides managers with up-to-date estimates of the costs of their processes during the period. A single allocation basis may fail to provide useful allocations for all production departments. The rate is prepared at the beginning of the period. The rate is used to apply overhead at the end of the accounting period

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