A method of assigning overhead costs to a product using a single overhead rate is:
A)Plantwide overhead rate method.
B)Cost pool overhead rate method.
C)Departmental overhead rate method.
D)Activity-based costing.
E)Overhead cost allocation method.

Question

Quizplus · Accepted Answer

The plantwide overhead rate method assigns all overhead costs to a product using a single overhead rate, which is calculated by dividing the total overhead costs of the plant by the total activity base. This method is simple and easy to use, but it may not accurately reflect the different overhead costs associated with different products or production departments.

A Method of Assigning Overhead Costs to a Product Using