Question: The allocation base selected for each department should be the cost driver of the costs in the departmental overhead pool. True False Direct labour hours



The allocation base selected for each department should be the cost driver of the costs in the departmental overhead pool. True False Direct labour hours would be the most appropriate cost allocation base for a Machining Department that uses machine robotics extensively. True False Using a departmental overhead rate reduces the cost distortion from allocating direct costs. True False Cost distortion results in the A. overcosting of some products and undercosting of other products B. accurate costing of all products C. overcosting of all products D. undercosting of all products
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