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Which amounts would you use to calculate the overhead rate, and why? What are the advantages of using the high or low estimates? Are there

  1. Which amounts would you use to calculate the overhead rate, and why?
  2. What are the advantages of using the high or low estimates?
  3. Are there any ethical issues in selecting the estimates?
  4. What are the ramifications or under- or overestimating the overhead?

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