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Answer question AIP 10.2 Allocating Overhead Using Practical Capacity LO 4 The president of Celestial Printing has decided to use the practical capacity of the

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AIP 10.2 Allocating Overhead Using Practical Capacity LO 4 The president of Celestial Printing has decided to use the practical capacity of the rm's printers to determine the application rates per machine hour for overhead. She believes that the cost of unused capacity would be valuable information. As the controller begins to calculate application rates for the coming year, he is surprised to nd that several more printers were purchased during the previous year despite there being considerable excess capacity. How does the cost allocation system affect the behavior of managers

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