Asked by
Adriara Durón
on Oct 24, 2024
Verified
A plantwide overhead rate is used to allocate overheads when it is assumed that overheads are all driven by the same cost driver.
Plantwide Overhead Rate
A single rate used to allocate manufacturing overhead costs to all units produced, regardless of the product line.
Cost Driver
A factor that causes the cost of an activity or process to change, used in activity-based costing to allocate costs.
- Recognize the use and rationale behind plantwide overhead rates.
Verified Answer
DD
Learning Objectives
- Recognize the use and rationale behind plantwide overhead rates.
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