Question: A decrease in denominator level of activity will lead to which of the following? A decrease in the fixed portion of the predetermined overhead rate.

A decrease in denominator level of activity will lead to which of the following?

A decrease in the fixed portion of the predetermined overhead rate.

An increase in the fixed portion of the predetermined overhead rate.

A decrease in the variable portion of the predetermined overhead rate.

An increase in the variable portion of the predetermined overhead rate.

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