True or False?

1) Overhead can be applied to products using one of three different methods: single plantwide rate, multiple production department rates, and activity-based costing.

2) The direct, sequential, and reciprocal services methods of allocating support department costs to production departments using ABC require a six-step process.

3) When a single plantwide overhead rate is used to apply overhead to products, support department costs are included with all other overhead costs and are applied using a single cost driver.

4) The physical units method and the weighted average method are the only two common methods for allocating joint costs.

5) While none of the four common methods for allocating joint costs will consistently allocate joint costs more accurately than another, one method may be more appropriate than another depending on the production process.

Answer rating: 100% (QA)

Ans 1 True Reason Single plantwide rate multiple production de... View the full answer