Product cost distortions may occur when using a plantwide factory overhead rate in the following situations except

a. Production Department A has a ratio of allocation base usage of 3:1, and Production Department B has a ratio of allocation base usage of 1:3.
b. The two production departments both have a ratio of allocation base usage of 1:1.
c. None of these are exceptions.
d. Production Department A has a production factory overhead rate of $100 while Production Department B has a production factory overhead rate of $75.


b

Business

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