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Chapter 2 : Which of the following statements is correct? By using a predetermined overhead rate, overhead costs become direct costs rather than indirect costs.

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Chapter 2 : Which of the following statements is correct? By using a predetermined overhead rate, overhead costs become direct costs rather than indirect costs. In a job-order system, companics can use a predetermined overhead rate that was calculated using actual costs. The allocation base a company uses to calculate a predetermined overhead rate does not have to be a cost driver. An allocation base is a factor such as direct labor hours and machine hours that drives overhead costs. No new data to save. Last checker

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