Overhead costs are first directly traced or distributed to support and production departments; support department costs are then allocated to production departments based on the amount of support activity used by each production department.
A)Single plantwide overhead rate
B)Multiple production department rates
C)Activity-based costing

Activity-Based Costing

A methodology in accounting that assigns costs to products or services based on the activities and resources that are consumed in the process of providing them.

Single Plantwide Overhead Rate

A method of applying overhead to products in which support department costs are combined with all other overhead costs, and the total overhead cost is then applied to the products using a single cost driver.

Multiple Production Department Rates

Costing rates used for different departments within a production process, reflecting the varying costs associated with each department.