You decide to save for your dream vacation to Europe (London, Paris, and Rome). You want to be able to travel in 8 years. If you
1 answer:
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Answer:
b. understate the predetermined overhead rate
Explanation:
The rate is determinate by distributing the expected cost over the cost driver
In this case labor cost.
as this value is higher than it should
(labor + some indirect)
the result of the division will be lower thus, the overhead rate is lower than it should be without the mistake.