In a process cost accounting system, factory overhead costs can be allocated to production departments by using a predetermined overhead allocation rate.

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In a process cost accounting system, factory overhead costs are allocated to production departments using a predetermined overhead allocation rate, which is calculated before the period begins based on estimated overhead costs and estimated activity levels. This rate is then used to allocate overhead costs to each department based on the actual activity levels during the period.

In a Process Cost Accounting System, Factory Overhead Costs Can