Allocating overhead involves the following four steps: 1) Assign overhead costs to departmental cost pools. 2) Select an allocation base for each department. 3) Compute overhead allocation rates for each department and 4) Use departmental overhead rates to assign overhead costs to products.

Question

Quizplus · Accepted Answer

This statement accurately describes the four steps involved in allocating overhead costs.

Allocating Overhead Involves the Following Four Steps: 1) Assign Overhead