Asked by Casey Hamilton on May 30, 2024
Verified
A single plantwide factory overhead rate assumes that all overhead is directly related to one activity representing the entire plant.
Plantwide Factory Overhead Rate
A single overhead absorption rate used throughout a manufacturing facility to allocate indirect costs to products.
Overhead
Overhead refers to ongoing business expenses not directly attributed to the production of goods or services, such as rent, utilities, and administrative costs.
- Become familiar with the essential principles and presuppositions of the single plantwide factory overhead rate methodology.
Verified Answer
RD
Rakayla DecuirMay 31, 2024
Final Answer :
True
Explanation :
A single plantwide factory overhead rate simplifies costing by assuming that all overhead costs are related to a single activity (such as machine hours or labor hours), making it easier to allocate these costs across all products uniformly.
Learning Objectives
- Become familiar with the essential principles and presuppositions of the single plantwide factory overhead rate methodology.