Which of the Following Companies Would Be Best Served by a Plantwide

question 155

Multiple Choice

Which of the following companies would be best served by a plantwide overhead rate?

• A) A company which manufactures many different products and whose operations are an equal mix of labor and mechanized work.
• B) A company which manufactures few products and whose operations are labor intensive.
• C) A company which manufactures many different products and whose operations are highly mechanized.
• D) A company whose products use overhead resources in very different ways.
• E) A company whose products differ in batch size and complexity, and consume different amounts of overhead resources.