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A rate set before the year begins and left unchanged through it is the predetermined overhead:

ARank
BRisk
CRule
DRate
Answer & Solution
Correct answer: D. Rate
1. Actual overhead figures arrive far too late to price jobs. 2. So a rate is fixed in advance from budgeted numbers. 3. That is the predetermined overhead rate. _Source: OpenStax Principles of Managerial Accounting, Chapter 4, Job Order Costing._
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