The overhead rate may be computed once allocation from support service cost to producing department has been performed.

Name: The overhead rate may be computed once allocation from support service cost to producing department has been performed.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The overhead rate is calculated by allocating support service costs to the producing department. Therefore, the allocation process must be completed before the overhead rate can be determined.

The Overhead Rate May Be Computed Once Allocation from Support