If a company's plantwide overhead rate is allocated based on direct labor hours,then each job will be allocated manufacturing overhead based on the total direct labor hours incurred on the job,regardless of the manufacturing department in which those hours were incurred.

Question

Quizplus · Accepted Answer

Since plantwide overhead rate is based on direct labor hours, the allocation of manufacturing overhead to each job will also be based on direct labor hours, regardless of the department in which those hours were incurred.

If a Company's Plantwide Overhead Rate Is Allocated Based on Direct