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Which of the following statements is incorrect? A. A predetermined overhead rate is calculated using actual cost and volume data. B. A predetermined overhead rate
Which of the following statements is incorrect?
A. A predetermined overhead rate is calculated using actual cost and volume data.
B. A predetermined overhead rate is calculated by diving costs by volume using a measure of volume such as direct labor hours or direct materials cost
C. A predetermined overhead rate may be used to allocate costs when volume varies during the year
D. A company may need to allocate overhead costs to products to make pricing decisions for the products
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