Which of the following approaches combines all the manufacturing overhead costs into a single cost pool?
A) Plantwide rate
B) Activity-based costing
C) Departmental overhead rates
D) Budgeted activity rate

Question

Quizplus · Accepted Answer

The plantwide rate approach combines all manufacturing overhead costs into a single cost pool and allocates this cost pool to products based on a single predetermined overhead rate applied to a single cost driver such as direct labor hours or machine hours.

Which of the Following Approaches Combines All the Manufacturing Overhead