Asked by sonia umezurike on Jun 17, 2024

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The departmental overhead rate method uses a different overhead rate for each production department.

Departmental Overhead Rate Method

A cost accounting technique that allocates overhead expenses to specific departments based on varying rates, often used to more accurately reflect the costs incurred by each department.

Production Department

A specific area or division within a company where products are manufactured or assembled.

  • Acquire knowledge on the departmental overhead rate technique and its sequential steps.
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JH
Joshua HalonaJun 21, 2024
Final Answer :
True
Explanation :
The departmental overhead rate method assigns overhead costs to each department based on the different activities and costs associated with each department, resulting in a different overhead rate for each department. This allows for a more accurate allocation of overhead costs to products or services that flow through different departments.