When production departments differ significantly in their manufacturing processes, it is recommended that the single plantwide factory overhead rate be used for allocating factory overhead.

Question

Quizplus · Accepted Answer

When production departments differ significantly in their manufacturing processes, it is more accurate to use departmental overhead rates rather than a single plantwide factory overhead rate to allocate factory overhead, as this method better reflects the actual consumption of overhead resources by different products.

When Production Departments Differ Significantly in Their Manufacturing Processes, It