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The advantage of using a predetermined overhead application rate is that: Overhead costs will be limited to the predetermined amount. Units produced are charged with

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The advantage of using a predetermined overhead application rate is that: Overhead costs will be limited to the predetermined amount. Units produced are charged with a \"normal\" amount of manufacturing overhead regardless of whether they are produced in a high-volume month or a low-volume month. Journal entries need not be made to record actual overhead costs incurred. The unit cost of production will be lower than it would be if actual overhead costs were assigned to units produced

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