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A costing system that uses actual costs for direct materials and labor and predetermined overhead rates to apply overhead is called a(n)

User Purnil Soni
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Answer: normal costing system

Step-by-step explanation:

A costing system which uses the actual costs for direct materials and the labor and predetermined overhead rates to apply overhead is referred to as the normal costing system.

Normal costing system is the cost allocation method whereby cost is assigned to products which are based on the labor, materials, and the overhead which are used in their production.

User Craftrac
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