Applied overhead consists of which of the following? d. actual activity times predetermined overhead rate If the level of activity increases,a. actual activity times actual overhead rateb. estimated activity times actual overhead ratec. estimated activity times predetermined overhead rate d. actual activity times predetermined overhead rate If the level of activity increases,a. variable cost per unit and total fixed costs increase.b. fixed cost per unit and total variable cost increase.c. total cost will increase and fixed cost per unit will decrease.d. variable cost per unit and total cost increase. Solution a. In overhead application , a predetermined Overhead rate is calculated and the actual activity is multiplied by the predetrmined overhead rate to get the applied Overhead. So option d is correct. b. If the activity level increases, the variable cost/unit remain same but total Variable cost increases. The Total Fixed cost remain the same but the per unit Fixed cost reduces. So, when Activity level increases, the Total cost increases and Fixed cost per unit decreases. Therefore option c. is correct..