Which of the following is a disadvantage of the departmental overhead rate method?

Multiple Choice

• The departmental overhead rate method assigns overhead on the basis of volume-related measures.

• The departmental overhead rate method is more refined than the plantwide overhead rate method.

• The departmental overhead rate method does not assign overhead on the basis of volume-related measures.

• The departmental overhead rate method is simpler and less costly to implement than the plantwide rate method.

• There are no disadvantages of the departmental overhead rate method.