Departmental overhead rates are preferred over plantwide rates when

Question

Quizplus · Accepted Answer

Departmental overhead rates are preferred over plantwide rates when the products use different amounts of different processes in different departments. This is because departmental rates allow for a more accurate allocation of overhead costs based on the actual usage of resources in each department, while plantwide rates may not accurately reflect the overhead costs associated with each product due to differences in the amount and type of resources used in each department.

Departmental Overhead Rates Are Preferred Over Plantwide Rates When