Which statements is true with regard to the departmental

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Problem 1: Which of the following statements is true with regard to the departmental overhead rate method?

Multiple Choice

Option 1:
It is especially accurate in assigning overhead costs that are not driven by production volume.

Option 2:
It uses a different overhead rate for each department.

Option 3: Each department has the same rate for the same activity pool.

Option 4:
It requires one overhead cost pool and one rate.

Option 5:
It is the same as activity-based costing.

Reference no: EM132977151

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