Which of the following is not one of the methods used for applying overhead?u a. activity-based costing application method
b. multiple production department rates
c. single plantwide application rate
d. single investment application rate

d. single investment application rate

Explanation:

Manufacturing costs can be defined as the overall costs associated with the acquisition of resources such as materials and the cost of converting these raw materials into finished goods. Manufacturing costs include direct labor costs, direct materials cost and manufacturing overhead costs.

An overhead allocation that is typically based on volume alone, will systematically overcost the high-volume products that are also complex and undercost low-volume products that are simple in nature.

Some of the methods used for applying overhead are;

a. Activity-based costing application method.

An activity-based costing (ABC) can be defined as a method of costing that identifies the numerous activities in a business firm and assigns the cost of each activity to their respective drivers based on their consumptions.

b. Multiple production department rates.

c. Single plantwide application rate.

A plant-wide rate can be defined as a single overhead rate used by business firms or companies to allocate the manufacturing overhead costs to the level of output or productivity.

d. single investment application rate

Explanation:

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