Asked by Viviana Gomez on Jul 16, 2024
Verified
Multiple production department factory overhead rates are less accurate than are plantwide factory overhead rates.
Production Department
A unit or section within a company responsible for the actual production of goods or services.
Plantwide Factory Overhead Rates
These rates are applied uniformly across all production activities in a plant to allocate indirect costs to products.
- Distinguish between plantwide and multiple production department factory overhead rates in terms of accuracy and application.
Verified Answer
VG
Varniraj GajeraJul 18, 2024
Final Answer :
False
Explanation :
Multiple production department factory overhead rates are more accurate because they take into account the specific overhead costs associated with each department, rather than averaging costs across the entire plant.
Learning Objectives
- Distinguish between plantwide and multiple production department factory overhead rates in terms of accuracy and application.