Which of the following statements is true regarding a predetermined overhead rate based on capacity? Multiple Choice It is usually lower than a predetermined overhead rate based on budgeted output for...

Extracted text: Which of the following statements is true regarding a predetermined overhead rate based on capacity? Multiple Choice It is usually lower than a predetermined overhead rate based on budgeted output for the coming period. It is usually higher than a predetermined overhead rate based on budgeted output for the coming period. It will usually be the same as a predetermined overhead rate based on budgeted output for the coming period. It is most often used for external financial reporting purposes.