33. The predetermined overhead rate is calculated by a. estimated annual overhead/Estimated manufacturing cost. b. actual annual overhead/Estimated annual activity level. c. estimated annual overhead/Actual annual activity level. d. actual annual overhead/Actual annual activity level. e. estimated annual overhead/Estimated annual activity level. 34. The overhead variance is least likely to be a. zero (actual overhead equals applied overhead). b. underapplied. c. overapplied. d. immaterial. e. underapplied and material Figure 3-6. Taran Company incurred the followi ing costs for the months of January and February Type of Cost Insurance JanuaryFebruary S 5,000 4,000 3,500 10,000 S 5,000 5,000 3,500 20,000 Utilities Depreciation Materials 35. Refer to Figure 3-6. From the information above we can assume that a. insurance and depreciation are fixed costs. b. output decreased from January to February. c output stayed the same from January to February d. insurance is a mixed cost