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Allocated factory overhead.
Underapplied overhead.
Question 3. Question : The two main advantages of using
predetermined factory overhead
rates are to provide more accurate unit cost information and
to:Student Answer:
Simplify the accounting process.
Provide cost information on a timely basis.
Insure transmission of correct data.
Extend the useful life of the cost data.
Adjust for variances in data sources.
UNIT 2 QUIZ
Question 4. Question : The ideal criterion for choosing an
allocation base for overhead is:
Student Answer:
Ease of calculation.
A cause-and-effect relationship.
Ease of use.
Its preciseness.