In activity-based costing, all overhead is lumped together and a predetermined overhead rate per unit of an allocation base, is computed and used to assign overhead to jobs and processes.

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In activity-based costing, overhead is divided into different cost pools based on the activity performed, and a separate predetermined overhead rate is computed for each cost pool. This allows for a more accurate assignment of overhead costs to jobs and processes based on the actual activities that drive those costs.

In Activity-Based Costing, All Overhead Is Lumped Together and a Predetermined