The support department costs allocated to producing departments is assigned to individual products through the use of:
A)plantwide overhead rates.
B)departmental overhead rates.
C)direct labor rate per hour.
D)direct material cost per unit.

Question

Quizplus · Accepted Answer

The support department costs are allocated to individual products through the use of departmental overhead rates, as this method allocates overhead costs based on the specific department that incurred the costs. It provides a more accurate allocation of overhead costs than using a plantwide overhead rate. Direct labor rate per hour and direct material cost per unit are not relevant to allocating support department costs.

The Support Department Costs Allocated to Producing Departments Is Assigned