1The cost object of the plantwide overhead rate method is aT

1.The cost object of the plantwide overhead rate method is:

a.The unit of product.

b.The production departments of the company.

c.The production activities of the company.

d.Manufacturing cost pools.

e.the time period.

2.Product level costs do not vary with the number of units or batches produced.

a.True

b.False

Solution

1.A The unit of product.

(Rate is determined using volume related measures such as direct labor hours, labor costs, or machine hours)

2.A. TRUE

Produce level activities are performed on each product line and are not affected by either the number of units or batches. For example, product design in needed only for each product line. Product level costs do not vary with the number of units or batches produced