Plantwide Overhead Rates Provide a More Accurate Computation of Factory

question 178

True/False

Plantwide overhead rates provide a more accurate computation of factory overhead than departmental overhead rates

---

Definitions:

Direct Labor-hours

The total time worked by employees that can be directly associated with the production of specific goods or services.

Manufacturing Overhead

Manufacturing overhead encompasses all indirect costs associated with the manufacturing process, including utilities, maintenance, and equipment depreciation.

Fixed Manufacturing Overhead

Overhead costs in manufacturing that remain constant regardless of the volume of production, such as salaries of supervisors and factory rent.

Manufacturing Departments

the specific sections within a manufacturing facility where different stages of the production process are completed, such as assembly, painting, or packaging.