Which of the following statement(s) is/are correct?I. A predetermined overhead rate is used to assign estimated overhead costs to work in process inventory. II. The predetermined overhead rate is calculated by dividing estimated overhead cost by the estimated volume or level of activity. III. The most common means of allocating overhead costs is to calculate a predetermined overhead rate at the end of the period.
A. I and III
B. I
C. I and II
D. II
Answer: C
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