A key difference between using multiple production department rates and activity-based costing is a. the multiple production department rate method is used to distribute overhead costs to production activities and activity-based costing is used to distribute overhead costs to production departments b. the multiple production department rate method is used to distribute general and administrative costs to production departments and activity-based costing is used to distribute overhead costs to production activities c. the multiple production department rate method is used to distribute general and administrative costs to production departments and activity-based costing is used to distribute general and administrative costs to production activities d. the multiple production department rate method is used to distribute overhead costs to production departments and activity-based costing is used to distribute overhead costs to production activities

The multiple production department rate method is used to distribute overhead costs to production activities and activity-based costing is used to distribute overhead costs to production departments

Explanation:

The activity-dependent costing (ABC) framework offers an alternate solution for the distribution of factory overheads utilizing various factory overhead levels centered on specific operations. Activities are the forms of activities or acts engaged in the development or operation process.

For example, installation, testing and product design tasks are operations that may be used to assign overheads.

Within the form of task-based expenditure, factory overhead expenses are originally budgeted for operations, also referred to as operation expense streams, such as equipment usage, testing, travel, manufacturing facilities and technical tasks. On the other side, where various service area overhead levels are utilized, plant overhead costs are then paid for in development divisions.