Which of the following statements is true with regard to the plantwide overhead rate method [Solved]

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Which of the next statements is true with regard to the
plantwide overhead price methodology The speed is decided utilizing volume-related measures. Its logical to make use of this methodology when overhead prices arent
intently tied to volume-related measures. This methodology makes use of a number of overhead charges. The speed is decided utilizing measures that arent intently
associated to quantity. The tactic gives essentially the most correct technique of allocating
overhead prices.

Plant large Overhead price: Plant large overhead price is used to use manufacturing overhead to work in course of stock. Normally this plant large overhead price shall be calculated initially of the interval. This price is used to cost overhead prices to a specific job. Its calculated by dividing the overhead price with an exercise measure associated to the quantity of manufacturing. Typically, labor hours or machine hours are used as a base to calculate the plant large overhead price. Thus, the true choice is The speed is decided utilizing quantity associated measures
Which of the following statements is true with regard to the plantwide overhead rate method The rate is determined using volume-related measures. It is logical to use this method when overhead costs are not closely tied to volume-related measures. This method uses multiple overhead rates. The rate is determined using measures that are not closely related to volume. The method provides the most accurate means of allocating overhead costs.

This post is last updated on hrtanswers.com at Date : 1st of September – 2022

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