Plantwide overhead rates typically do a better job of matching each department's overhead costs to the products that use the department's resources than do departmental overhead rates.

Question

Quizplus · Accepted Answer

Plantwide overhead rates apply a single overhead rate across the entire plant, which may not accurately reflect the specific overhead costs incurred by individual departments, unlike departmental overhead rates that are tailored to each department's specific activities and costs.

Plantwide Overhead Rates Typically Do a Better Job of Matching