Which of the Following Condition(s) Favours Using Departmental Overhead Rates

Multiple Choice

Which of the following condition(s) favours using departmental overhead rates in place of a plantwide overhead rate?

A) Manufacturing overhead represents a small proportion of total cost.
B) Different jobs or products use the departments to a different extent.
C) Departments use a similar amount of indirect costs.
D) Products spend the same amount of time in each department.