A Furniture Manufacturer Has Decided That Its Use of a Single

Multiple Choice

A furniture manufacturer has decided that its use of a single plantwide predetermined overhead allocation rate is no longer accurate.In making the transition to using multiple predetermined overhead allocation rates,which of the following statements is incorrect?

A) With multiple overhead rates, there are multiple cost pools.
B) Management must analyze the expected overhead costs and separate them into a cost pool for each department.
C) With multiple overhead rates, there is one cost pool and multiple allocation bases.
D) The use of multiple predetermined overhead allocation rates is more complex, but it may be more accurate.