Question

Each of the following are types of________allocation methods: plantwide rate method, departmental overhead rate method and activity-based costing method.

Answer 1

______ = overhead

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Answer 2

Each of the following are types of Overheads allocation methods.

Types of overhead allocation method:

Factory overheads like rent, electricity or water could not be traced directly to a cost object. At the time of measuring the cost of a cost object these overheads are apportioned to departments they pass via for processing  or the actual job using an allocation method. The common methods for allocating overheads should be plant-wide rate method, departmental overhead rate method and activity-based costing method.

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