A modification of the overhead allocation method which uses a single plantwide rate,is to use multiple predetermined overhead allocation rates that have a single allocation base.

Question

Quizplus · Accepted Answer

Using multiple predetermined overhead rates involves using different rates for different departments or activities, not a single allocation base. This approach is more refined than using a single plantwide rate and allows for more accurate allocation of overhead costs based on the specific activities or departments.

A Modification of the Overhead Allocation Method Which Uses a Single