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Learning Objective $17-$P$2$: Allocate overhead costs using the departmental overhead rate method.

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When using multiple departmental rates, overhead costs must first be traced to each department and then divided by the measure of output for that department to yield the departmental overhead rate. Overhead is applied to products using this rate as products pass through each department.

Assessing Plantwide and Departmental Overhead Rate Methods

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Knowledge Check $01$

If overhead cost does not bear a relation to the allocation base, allocating overhead cost using a single plantwide overhead rate can:

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