When overhead is allocated to every product using the same manufacturing overhead rate, this rate is called the departmental overhead rate.

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Quizplus · Accepted Answer

When overhead is allocated to every product using the same manufacturing overhead rate, this rate is called the plant-wide overhead rate. Departmental overhead rate is different because it allocates overhead to products using different overhead rates based on the department that incurs the overhead costs.

When Overhead Is Allocated to Every Product Using the Same