The cost object(s) of the departmental overhead rate method is:
A) The unit of product.
B) The production departments of the company.
C) The production departments in the first stage and the unit of product in the second stage.
D) The unit of product in the first stage and the production departments in the second stage.
E) The production activities of the company.

Question

Quizplus · Accepted Answer

The departmental overhead rate method first assigns overhead costs to production departments and then allocates these costs to units of product, making both the departments and the units of product cost objects in different stages.

The Cost Object(s) of the Departmental Overhead Rate Method Is