What will the use of departmental overhead rates generally result in?
A)The use of a separate cost allocation base for each department in the factory
B)The use of a single cost allocation base
C)The use of a single overhead cost pool for the factory
D)The use of separate cost allocation base for each activity in the factory

Question

Quizplus · Accepted Answer

Departmental overhead rates involve allocating overhead costs to each department based on a specific cost allocation base. This allows for more accurate cost allocation as each department may have different cost drivers. Therefore, A is the correct answer as it involves the use of separate cost allocation base for each department in the factory.

What Will the Use of Departmental Overhead Rates Generally Result