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Under activity-based costing, the activity rate for an activity cost pool is calculated by dividing the total overhead cost in the activity cost pool by:
Under activity-based costing, the activity rate for an activity cost pool is calculated by dividing the total overhead cost in the activity cost pool by: the direct labor hours required by the product the machine hours required by the product the total activity level for the cost pool o the total number of setups required for the activity cost pool None of the above TRUE OR FALSE: Direct labor costs are usually excluded from the costs that are allocated to the activity pools in the first stage allocation under activity-based costing. True False TRUE or FALSE? If variable cost per unit decreases, and all other factors remain the same, then the contribution margin ratio will decrease. True False TRUE or FALSE? The lower the contribution margin ratio, the higher the sales volume required to cover a given amount of fixed costs. True False
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