When production departments differ significantly in their manufacturing process,it is recommended that the single plantwide factory overhead rate be used for allocating factory overhead.

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When production departments differ significantly in their manufacturing process, it is recommended that multiple predetermined overhead rates be used for each department rather than a single plantwide factory overhead rate. This approach provides a more accurate allocation of factory overhead costs to each department based on the specific activities and costs associated with that department's manufacturing process.

When Production Departments Differ Significantly in Their Manufacturing Process,it Is