Which concept of capacity applies the least amount of overhead to units of production A. Theoretical B. Normal C. Practical D. Minimum volume

Answer A Is correct 

In getting the standard cost or the predetermined rate, we divide the Budgeted cost over the Budgeted level of activity. In order to get the least amount of application rate, the denominator should be higher. Among the choices, the highest level of activity which will give us the least amount of application rate is Theoretical Capacity (answer A)