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Question(s) / Instruction(s):

A job order cost system uses a predetermined overhead rate based on estimated activity and estimated manufacturing overhead cost. At the end of the year, under applied overhead might be explained by which of the following situations? a) Actual activity Actual manufacturing overhead costs Greater than estimated Greater than estimated b) Actual activity Actual manufacturing overhead costs Greater than estimated Less than estimated c) Actual activity Actual manufacturing overhead costs Less than estimated Greater than estimated d) Actual activity Actual manufacturing overhead costs Less than estimated Less than estimated

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