Which of the following condition(s)favors using departmental overhead rates in place of a plantwide overhead rate?
A)Different departments incur different amounts and types of manufacturing overhead.
B)Different jobs or products use the departments to a different extent.
C)Both of the above.
D)Neither of the above.

Question

Quizplus · Accepted Answer

Departmental overhead rates are preferred when different departments incur different amounts and types of manufacturing overhead and when different jobs or products use the departments to a different extent. This allows for a more accurate allocation of overhead costs to products or jobs that use specific departments more heavily.

Which of the Following Condition(s)favors Using Departmental Overhead Rates in Place