Which of the following companies would be best served by a plantwide overhead rate? Multiple Choice A company that manufactures few products and whose operations are labor intensive. A company whose products use overhead resources in very different ways. A company that manufactures many different products and whose operations are highly mechanized. A company whose products differ in batch size and complexity and consume different amounts of overhead resources. A company that manufactures many different products and whose operations are an equal mix of labor and mechanized work.

Question

Marely Mack

Business

25 December, 13:52

Which of the following companies would be best served by a plantwide overhead rate? Multiple Choice A company that manufactures few products and whose operations are labor intensive. A company whose products use overhead resources in very different ways. A company that manufactures many different products and whose operations are highly mechanized. A company whose products differ in batch size and complexity and consume different amounts of overhead resources. A company that manufactures many different products and whose operations are an equal mix of labor and mechanized work.

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Answers (1)

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Nikolas Randall · Answer 1

A company whose products differ in batch size and complexity and consume different amounts of overhead resources

Explanation:

Plantwide overhead rate is the overheads absorption rate calculated based on the total entity activity. This is ideal when when product consume overheads in same manner but in different quantities.