Which statement is incorrect regarding the departmental costing method: O A. The method can be useful when each product uses the departments to a different extent. B. Every department can have a different cost driver to use as the allocation base. OC. Every department must use the same cost driver for the allocation base. OD. The method is more complicated than the simpler traditional method that only uses 1 plantwide overhead rate. Aunt Dorothy Snacks makes potato chips, com chips, and cheese puffs using three different production lines within the same manufacturing plant. Currently, Aunt Dorothy uses a single plantwide overhead rate to allocate its $3,535,000 of annual manufacturing overhead. Of this amount, $1,800,000 is associated with the potato chip line, $1,035,000 is associated with the corn chip line, and $700,000 is associated with the cheese puff line. Aunt Dorothy's plant is currently running a total of 17,500 machine hours: 11,250 in the potato chip line, 3,450 in the corn chip line, and 2,800 in the cheese puff line. Aunt Dorothy considers machine hours to be the cost driver of manufacturing overhead costs. 1. What is Aunt Dorothy's plantwide overhead rate? 2. Calculate the departmental overhead rates for Aunt Dorothy's three production lines. Round all answers to the nearest cent. 3. Which products have been overcosted by the plantwide rate? Which products have been undercosted by the plantwide rate? 1. What is Aunt Dorothy's plantwide overhead rate? Determine the formula for calculating the plantwide overhead rate, then calculate the rate. Plantwide overhead rate per machine hour 2. Calculate the departmental overhead rates for Aunt Dorothy's three production lines. Round all answers to the nearest cent. Begin by determining the formula for calculating a departments overhead rate, then calculate the overhead rates for each department Department overhead rato Potato Chips per machine hour Com Chips per machine hour Cheese Pulls per machine hour 3. Which products have been overcosted by the plantwide rato? Which products have been undercosted by the plantwide rate? For each product, select if it was overcosted or undercosted by using the plantwide rato. Choose from any list or enter any number in the input fields and then continue to the next