Which Best Describes the Flow of Overhead Costs in an Activity-Based

Which best describes the flow of overhead costs in an activity-based costing system?

A) Overhead costs $\rightarrow$ direct labor cost or hours $\rightarrow$ products
B) Overhead costs $\rightarrow$ products
C) Overhead costs $\rightarrow$ activity cost pools $\rightarrow$ cost drivers $\rightarrow$ products
D) Overhead costs $\rightarrow$ machine hours $\rightarrow$ products

Correct Answer:

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