The plantwide overhead cost allocation rate is computed by dividing the estimated total manufacturing overhead costs by the estimated total quantity of the cost allocation base.

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This statement is true. The plantwide overhead cost allocation rate is determined by dividing the total estimated manufacturing overhead costs by the total estimated quantity of the cost allocation base, which is then used to allocate overhead costs to individual products or cost objects.

The Plantwide Overhead Cost Allocation Rate Is Computed by Dividing