In a process costing system,factory overhead costs can be allocated to production departments by using a predetermined overhead allocation rate.

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In a process costing system, it is common practice to allocate factory overhead costs to production departments by using a predetermined overhead allocation rate. This rate is usually based on an estimate of the total overhead costs to be incurred and the total number of units expected to be produced during the period. By using this method, the factory overhead costs can be assigned to each unit of production, which helps in determining the total cost of production and the selling price of each product.

In a Process Costing System,factory Overhead Costs Can Be Allocated