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Which of the following statements is true when a company uses a predetermined overhead rate based on capacity? Multiple Choice The amount of overhead assigned

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Which of the following statements is true when a company uses a predetermined overhead rate based on capacity? Multiple Choice The amount of overhead assigned to cost objects, such as products and customers, will include some unused capacity costs The unused capacity cost will fluctuate from one period to the next due solely to the fact that the company's level of output increases or decreases from one period to the next The amount of overhead assigned to cost objects, such as products and customers, will fluctuate from one period to the next due solely to the fact that the company's level of output increases or decreases from one period to the next The amount of overhead assigned to cost objects, such as products and customers, will fluctuate from one period to the next when the company's level of output holds constant from one period to the next

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