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The __________ method uses different rates for each production department to allocate factory overhead costs to products. multiple production department factory overhead rate single plant wide factory overhead rate activity-based costing None of these choices are correct.

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Answer:

multiple production department factory overhead rate

Explanation:

For allocating the factory overhead, the most common method is multiple production department factory overhead rate

The formula of the  multiple production department factory overhead rate  is shown below:

= Estimated department manufacturing overhead ÷ Estimated allocation base  

By this formula, we can find out the factory overhead rate with respect to multiple production department

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