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21 use of a plantwide factory overhead rate does not distort product costs when ther 4294919

 

 

21. Use of a plantwide factory overhead rate does not distort product costs when there are differences in the factory overhead rates across different production departments. 
 

 

22. Use of a plantwide factory overhead rate does not distort product costs only when products require different ratios of allocation-base usage in each production department. 
 

 

23. Use of a plantwide factory overhead rate distorts product costs when there are differences in the factory overhead rates across different production departments and when products require different ratios of allocation-base usage in each production department. 
 

 

24. When production departments differ significantly in their manufacturing process, it is recommended that the single plantwide factory overhead rate be used for allocating factory overhead. 
 

 

25. In an effort to simplify the multiple production department factory overhead rate method, the same rate can be used for all departments. 
 

 

26. Activity cost pools are cost accumulations associated with a given activity. 
 

 

27. Activity cost pools are assigned to products, using factory overhead rates for each activity. 
 

 

28. Activity rates are computed by dividing the cost budgeted for each activity pool by the estimated activity base for that pool. 
 

 

29. Direct labor hours is not a cost pool that is regularly used in the activity-based costing method. 
 

 

30. Estimated activity-base usage quantities are the total activity-base quantities related to each product. 
 

 

 

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