Question

Which of the following statements is true with regard to the departmental overhead rate method? a. It is logical to use this method when overhead resources are consumed by various products in substantially the same way throughout multiple departments. b. It is logical to use this method when overhead resources are consumed by various products in substantially different ways throughout multiple departments.

Answer 1

Answer:

b. It is logical to use this method when overhead resources are consumed by various products in substantially different ways throughout multiple departments.

Explanation:

The departmental overhead rate method -

It refers to the expense rate charged for the specific department of the factory for the goods and services produced , is referred to as the departmental overhead rate method.

It is a type of some standard charge imposed for the particular activity produced, for each and every step of the production of the goods and service, until the final product is produced, at various level a specific rate is applied, i.e. , the departmental overhead rate method.

Hence, from the given information of the question,

The correct answer is b.