Question: In a normal costing system and regarding the overhead allocated, the higher the denominator level, the: a. higher the budgeted fixed manufacturing cost rate. b.

In a normal costing system and regarding the overhead allocated, the higher the denominator level, the:

a. higher the budgeted fixed manufacturing cost rate.

b. lower the amount of fixed manufacturing costs allocated to each unit produced.

c. higher the favourable production-volume variance.

d. more likely actual output will exceed the denominator level.

e. none of the above

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