The departmental overhead rate method allows each department to have its own overhead rate and its own ________.

Departmental Overhead Rate

A rate used to allocate overhead costs to specific departments, calculated based on the relationship between indirect costs and activity level.

Own Allocation Base

Refers to the specific denominator that a company chooses to allocate indirect costs to different cost objects, based on their usage or benefit from those costs.

Comprehend and utilize the notion of departmental overhead rates.

Verified Answer

Magali CastroJun 09, 2024

Final Answer :

allocation base

Learning Objectives

Comprehend and utilize the notion of departmental overhead rates.

The departmental overhead rate method allows each department to have its own overhead rate and its own ________.

Definitions

Learning Objectives

Learning Objectives

Related questions