Plantwide overhead rates provide a more accurate computation of factory overhead than departmental overhead rates

Name: Plantwide overhead rates provide a more accurate computation of factory overhead than departmental overhead rates
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Departmental overhead rates are more accurate because they take into account the specific costs associated with each department, rather than spreading overhead costs evenly across the entire plant regardless of the actual usage by each department.

Plantwide Overhead Rates Provide a More Accurate Computation of Factory