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Production overheads are absorbed into production units by the use of overhead cost rates

Production overheads are absorbed into production units by the use of overhead cost rates. Which ofthe following best describes how the overhead cost rate is calculated?

A. Total indirect costs for the business divided by the total number of units produced.

B.  Cost centre overheads divided by cost centre activity levels.

C. Number of units produced divided by the total cost centre overheads.

D. Number of units produced multipled by the unit overhead cost.

May 01 2018 View more View Less

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