Allocation base Manufacturing overhead or indirect costs Directly traced to units of product Cost pool Activity-based management second plantwide departmental activities costs activity based costing cost object overhead resources Product costs consist of direct labor, direct materials, and the same way that direct materials and direct labor can. uses a single rate for allocating overhead costs to products uses multiple volume-based measures to allocate overhead costs to products. Overhead costs cannot be in The overhead rate method The overhead rate method focuses on activities and the cost of carrying out activities The is the target of the cost assignment The departmental overhead rate method allows each department to have its own overhead rate and its own The premise of ABC is that it takes to make products and provide services. The stage of ABC is to compute an activity rate for each cost pool and then use this rate to allocate overhead costs to products. is a collection of costs that are related to the same or similar activity Allocated overhead depending upon the allocation method used. vary