Question

The cost object(s) of the departmental overhead rate method is: Multiple Choice The unit of product. The production departments of the company. The production departments in the first stage and the unit of product in the second stage. The unit of product in the first stage and the production departments in the second stage. The production activities of the company.

Answer 1

The production departments in the first stage and the unit of product in the second stage.

Step-by-step explanation:

The cost object under the department overhead rate used to allocate the cost based on the cost drivers.

In this departmental overhead rate method, first the overhead is allocated in the first department after that in the second stage the unit of product is done

so that the proper sequencing could be done and actual value could come