A major disadvantage of using a plantwide overhead rate is the extreme difficulty in gathering the needed information.

Question

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Plantwide overhead rate involves the use of a single predetermined overhead rate for all of a company's products and operations, which can be easy to compute but can result in inaccurate allocation of overhead costs. However, gathering the needed information for this method is not considered a major disadvantage.

A Major Disadvantage of Using a Plantwide Overhead Rate Is