24 which of the following statements is true with regard to the plantwide overhead rate method? multiple…

24 which of the following statements is true with regard to the plantwide overhead rate method? multiple choice the rate is determined using volume - related measures. it is logical to use this method when overhead costs are not closely tied to volume - related measures. this method uses multiple overhead rates. the basic principle underlying the plantwide overhead rate method is that activities are what cause overhead cost to be incurred. this method uses a different overhead rate for each department

24 which of the following statements is true with regard to the plantwide overhead rate method? multiple choice the rate is determined using volume - related measures. it is logical to use this method when overhead costs are not closely tied to volume - related measures. this method uses multiple overhead rates. the basic principle underlying the plantwide overhead rate method is that activities are what cause overhead cost to be incurred. this method uses a different overhead rate for each department

Answer

Brief Explanations:

The plant - wide overhead rate method determines the rate using volume - related measures like direct labor - hours or machine - hours. It uses a single overhead rate for the entire plant, not multiple rates or different rates for each department. It's most logical when overhead costs are closely related to volume. The activity - based costing principle is that activities cause overhead costs, not the plant - wide overhead rate method principle.

Answer:

The rate is determined using volume - related measures.