The appeal of using multiple departmental overhead rates is that they presumably provide a more accurate accounting of the costs caused by jobs.

Question

Quizplus · Accepted Answer

Using multiple departmental overhead rates allows for a more accurate allocation of overhead costs to jobs based on the specific department or function that incurs those costs. This can provide a more accurate reflection of the actual costs incurred by each job, as opposed to using a single plantwide overhead rate that may not consider the different cost drivers among departments.

The Appeal of Using Multiple Departmental Overhead Rates Is That