Match Each Description Below to the Appropriate Method for Allocating

question 109

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 activities, then support activity costs are allocated to production activities based on the amount of support activity used by each production activity; production activity costs are applied to the products using cost drivers for each production activity.
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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