Question

The cost object of the plantwide overhead rate method is: Multiple Choice The production departments of the company. The unit of product. The production activities of the company.

Answer 1

Answer: The unit of product.

Step-by-step explanation:

The units produced of the goods being produced will be the appropriate cost object because it will apportion the overhead cost to the plant based on how much goods were produced by the plant itself because this would determine how much overhead the plant used.

Manufacturing overheads only occur because goods are being produced which is why the best cost object would be those same goods being produced.