Using a factory overhead allocation method such as the single plantwide factory overhead rate can cause product cost distortions. However, this method is less complicated and inexpensive to maintain. When and why would a company consider using a more complicated method? Are there some products within a company's product line where using the simpler method would be accurate enough? Think of companies that may use a simpler or more complicated method.

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Lets break down the considerations for using a factory overhead allocation method such as the single plantwide factory overhead rate versus a more complicated method Single Plantwide Factory Overhead ... View the full answer