Which of the following are advantages of using the plantwide overhead rate method?

a. The use of cost pools is considerably more accurate than other overhead allocations.

b. The necessary information is readily available. It is more accurate than traditional overhead allocations.

c. Each department has its own overhead rate and its own allocation base.

d. It takes into account that when products differ in batch size and complexity, they usually consume different amounts of overhead resources.

Question

Business

Cheddar

8 December, 01:06

Which of the following are advantages of using the plantwide overhead rate method?

a. The use of cost pools is considerably more accurate than other overhead allocations.

b. The necessary information is readily available. It is more accurate than traditional overhead allocations.

c. Each department has its own overhead rate and its own allocation base.

d. It takes into account that when products differ in batch size and complexity, they usually consume different amounts of overhead resources.

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Answers (1)

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Michelle Macias · Answer 1

Which of the following are advantages of using the plantwide overhead rate method? Option B is the most suitable answer - The necessary information is readily available. It is more accurate than traditional overhead allocations.

Explanation:

Majorly, the advantage of applying the plantwide overhead rate method is that the necessary information is readily available.

Therefore, option B is the most suitable answer.