Fill in the Blank QuestionFill in the blank question.The overhead rate method uses a different overhead rate per production department.

The overhead rate method uses a different overhead rate per production department to allocate indirect costs effectively based on each department's actual usage of resources. This approach recognizes that different departments may have varying levels of overhead costs due to differences in operations, labor, machinery, and other factors. By applying specific overhead rates tailored to each department, organizations can achieve a more accurate representation of the costs associated with producing a particular product or providing a service. This method enhances cost control, improves decision-making regarding pricing and budgeting, and supports more precise financial reporting by ensuring that each department's unique cost structure is considered in the overall allocation of overhead.