How does the accuracy of departmental overhead allocation rates compare to a single plant-wide allocation rate?

Departmental overhead allocation rates are more accurate than a single-plantwide rate

Departmental overhead allocation rates have the same accuracy as a single-plantwide rate

Departmental overhead allocation rates are less accurate than a single-plantwide rate

A company has two manufacturing overhead activities: mixing and packaging. The cost driver for mixing is direct labor hours and the cost driver for packaging is units packaged. The following estimates are assumed for next year:

Manufacturing overhead cost related to mixing: $100,000

Manufacturing overhead cost related to packaging: $200,000

Direct labor hours: 100,000 hours

Units packaged: 400,000 units

Under ABC, what is the amount of manufacturing overhead related to packaging that should be allocated to an order that requires 3 direct labor hours to produce 15 units of product?

$10.50

$7.50

$9.00

$11.25