Required information In this Learning Objective, we will learn about the three common approaches to assign overhead costs to products: plantwide overhead rate, departmental overhead rates, and activity-based costing. The plantwide overhead rate is the simplest approach to allocating overhead costs but can lead to distorted product costs. The departmental overhead rates are a more refined approach to allocating overhead costs but fall short in situations where a company has a range of products and complex overhead costs. Activity-based costing attempts to assign overhead costs more accurately by Identifying the underlying activity that causes the consumption of overhead resources and then allocating overheads based on these activities. Activity-Based Costing ABC Assign Overhead Costs to Products by identifying the Activities that Cause Overhead Costs Overhead Costs 430 00 131 Knowledge Check 01 Which of the following are part of the four-level hierarchy used in activity based costing systems? [You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect) Batch level activities Company wide activities Facility level activities Overhead activities 2 Product level activities Unt level activities