ABC Costing: Allocate Overhead Via Departmental Rates
Channel: ProfAlldredge
Date: 2017-03-22

@ProfAlldredge 
MFG overhead can be allocated to jobs by departmental rates.  This allows the use of different allocation basis, if that makes more sense than just a single rate and basis.
For example, if one department is labor intensive, the direct labor hours might be the best allocation basis.  If another department is automated, then machine hours might be the best allocation basis. For best viewing, switch to 1080p