When Overhead Is Allocated to Every Product Using the Same

question 252

True/False

When overhead is allocated to every product using the same manufacturing overhead rate, this rate is called the departmental overhead rate.

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Definitions:

Accumulated Depreciation

The total depreciation amount that has been charged against a fixed asset's cost over its useful life to reflect wear and tear.

Equipment

Tangible property owned by a business used in operations, such as machinery, vehicles, or computers.

Balance

The difference between the total debits and credits in an account, or the equilibrium between two opposing forces or aspects.

Revaluation Surplus

This is the increase in value of an asset after it has been appraised again and is recorded as a gain in equity under a company's financials.