One condition that favors using departmental overhead rates,rather than a plantwide overhead rate,is that different jobs or products use the departments to a different extent.

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When different jobs or products use departments to different extents, it may result in over or under allocation of overhead costs if a plantwide overhead rate is used. Departmental overhead rates allocate overhead costs more accurately as they consider the specific departments that are used for each job or product.

One Condition That Favors Using Departmental Overhead Rates,rather Than a Plantwide