Match Each Description Below to the Appropriate Method for Allocating

question 90

Short Answer

Match each description below to the appropriate method for allocating costs (a-c).
-Overhead costs are first directly traced or distributed to support and production departments; support department costs are then allocated to production departments based on the amount of support activity used by each production department.
A)Single plantwide overhead rate
B)Multiple production department rates
C)Activity-based costing

• A)Single plantwide overhead rate
• B)Multiple production department rates
• C)Activity-based costing

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Definitions:

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