Question

The __________ method uses different rates for each production department to allocate factory overhead costs to products. multiple production department factory overhead rate single plant wide factory overhead rate activity-based costing None of these choices are correct.

Answer 1

multiple production department factory overhead rate

Step-by-step explanation:

For allocating the factory overhead, the most common method is multiple production department factory overhead rate

The formula of the multiple production department factory overhead rate is shown below:

= Estimated department manufacturing overhead ÷ Estimated allocation base

By this formula, we can find out the factory overhead rate with respect to multiple production department