The use of departmental overhead rates will generally result in the use of a:
A)single cost allocation base.
B)separate cost allocation base for each department in the factory.
C)single overhead cost pool for the factory.
D)separate cost allocation base for each activity in the factory.

Question

Quizplus · Accepted Answer

Departmental overhead rates result in assigning overhead costs to each department separately based on its own cost allocation base. This means each department will have its own separate cost allocation base, unlike a single cost allocation base used in traditional costing.

The Use of Departmental Overhead Rates Will Generally Result in the Use