Which of the following are a type of overhead allocation method?

a. division overhead rate method.

b. activity-based costing method

c. departmental overhead rate method

d. plantwide overhead rate method

b. activity-based costing method

c. departmental overhead rate method

d. plantwide overhead rate method

Explanation:

B. Activity based costing method allocates different cost pools or drivers to each overhead based on its level of activity or usage etc. For example if we want to find the cost of telephone calls we would find the number of total calls not number of days. Similarly if we want to calculate the wages we will find the number of hours not days etc.

C. Department overhead rate method allocates different rates to each department. For example the rates of the lubricating department may be different from the finishing department or polishing department etc.

D. Platwide Overhead rate method allocates a single rate to all the products. It is based on direct labor hours. And number of hours are used to allocate it to different products. For example the rate may be $1.5 per hour and it can be calculated for different products as product A requires 6 hours and product B requires 9 hours so the rate for Product A would be $ 9.0 and $ 12 for product B.

A. division overhead rate method. Theres no such overhead rate as division overhead rate method.