Miller Safety Equipment uses multiple production department rates to apply overhead to products. The company will allocate support department costs to production departments based on the amount of support activity
A)used by the department
B)budgeted by the department
C)used by the department in the prior month
D)used by the entire production facility

Question

Quizplus · Accepted Answer

The correct approach for allocating support department costs to production departments is based on the amount of support activity used by each department. This ensures that the allocation is fair and reflects the actual consumption of support services by each production department.

Miller Safety Equipment Uses Multiple Production Department Rates to Apply