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The predetermined overhead rate used to allocate overhead costs is calculated based on estimated numbers. When the estimated numbers are not the same as the

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The predetermined overhead rate used to allocate overhead costs is calculated based on estimated numbers. When the estimated numbers are not the same as the actual numbers such that the allocated overhead costs to products is larger than the actual overhead costs incurred during the period A correcting journal entry needs to be made to reduce the cost of goods sold and inventory values by the amount of overstatement. A correcting journal entry needs to be made to increase the cost of goods sold and inventory values by the amount of overstatement. A correcting journal entry needs to be made to increase the cost of goods sold and inventory values by the amount of understatement. No correcting journal entry needs to be made

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