Asked by
Stephany Flores
on Oct 10, 2024Verified
The higher the denominator activity level used to compute the predetermined overhead rate, the higher the predetermined overhead rate.
Denominator Activity Level
A term used in cost accounting to represent the total activity or volume that is used to allocate fixed costs to units of output.
- Understand the impact of the activity level in the denominator on established overhead rates.
Verified Answer
SM
Learning Objectives
- Understand the impact of the activity level in the denominator on established overhead rates.
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