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Which of the following statements is true? When calculating the predetermined overhead rate, estimated amounts are used for the total manufacturing overhead costs and total

Which of the following statements is true?

When calculating the predetermined overhead rate, estimated amounts are used for the total manufacturing overhead costs and total amount of the allocation base used in the numerator and denominator.

The predetermined overhead rate is calculated based on actual amounts of manufacturing overhead cost and allocation base.

Allocation is used to assign direct product costs to all manufactured products.

Predetermined overhead rates are calculated at the end of each annual accounting period.

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