Question & Answer: Departmental overhead rates are generally preferred to plant-wide overhead rates…..

Departmental overhead rates are generally preferred to plant-wide overhead rates when: O the activities of the various departments in the plant are not homogeneous. O the activities of the various departments in the plant are homogeneous. O most of the overhead costs are fixed. O all departments in the plant are heavily automated

Departmental overhead rates are generally preferred to plant-wide overhead rates when: the activities of the various departments in the plant are not homogeneous. the activities of the various departments in the plant are homogeneous. most of the overhead costs are fixed. all departments in the plant are heavily automated.

Expert Answer

Departmental overhead rates are used when the manufacturer produces different varieties of products and processes which are reffered s deprtments.

So departmental overhead rates are used when the company follws diversified activities ot processes not uniform or homogenous activity.

So answer is the activities of the various deprtments in Tha plant are not homogeneous.

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