Every year, Charles Co$.\text{'}$s cost accountant calculates predetermined fixed factory overhead rate based on expected fixed cost and

normal activity. However, at the year$-$end, Charles has under applied fixed overhead. This would be best explained under which of the

following situations?

T

A$.$ Actual fixed costs: Greater than expected Actual activity:Higher than normal

B$.$ Actual fixed costs: Greater than expected Actual activity:Lower than normal

C$.$ Actual fixed costs: Lesser than expected Actual activity:Higher than normal

D$.$ Actual fixed costs: Lesser than expected Actual activity:Lower than normal