Departmental Overhead Rates Are Generally Preferred to Plant-Wide Overhead Rates

question 112

Multiple Choice

Departmental overhead rates are generally preferred to plant-wide overhead rates when:

• A)the activities of the various departments in the plant are not homogeneous.
• B)the activities of the various departments in the plant are homogeneous.
• C)most of the overhead costs are fixed.
• D)all departments in the plant are heavily automated.

---

Definitions:

Control Charts

A statistical tool used in process monitoring to determine if a manufacturing or business process is in a state of control.

Ideal Weight

The weight considered to be most favorable for an individual's health and well-being, based on factors such as height, age, and gender.

Lower Control Limit

The lowest boundary in process control that allows for process variability while still indicating acceptable performance levels.

Sample Ranges

The difference between the highest and lowest values in a sample, used in statistical analysis.