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Production overheads are absorbed into production units by

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Production overheads are absorbed into production units by the use of overhead cost rates. Which of the following best describes how the oeverhead cost rate is calculated?

A. Total indirect costs for the business divided by the total number of units produced.

B. Cost centre overheads divided by cost centre activity levels.

C. Number of units produced divided by thetotal cost centre overheads.

D. Number of units produced multipled by the unit overhead cost.

Reference no: EM13481569

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