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Question(s) / Instruction(s):

Allocation of overhead based on volume such as direct labor hours:

A. must be used for external financial reporting

B. is always used in activity-based costing

C. will over-allocate overhead to high-volume products and under-allocate to low-volume products

D. will over-allocate overhead to low-volume products and under-allocate to high-volume products

 

 

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