Which of the following statements are true concerning the predetermined overhead rate when the direct labor-hour requirement for the Deluxe model dropped from 5 hours to 2 hours?
a. The predetermined overhead rate decreases because the total estimated overhead cost increased.
b. The predetermined overhead rate decreased because the total direct labor-hours dropped.
c. The predetermined overhead rate increased because the total estimated overhead cost increased.
d. The predetermined overhead rate increased because the total direct labor-hours dropped.
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Which of the following statements are true concerning the predetermined overhead rate when the direc...
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