Answer :
Answer: A. True
Explanation: individual departments have their own overhead rates and allocation base in the departmental overhead rate method. While both rate methods are easy to implement, it is more convenient to use the departmental overhead rate method as it provides more accurate overhead costs and especially when different departments use overhead resources in substantially different ways.
The methods used in the departmental overhead rate method include:
1. Assigning overhead costs to departmental cost pools
2. Selecting an allocation base for each department
3. Compute the allocation rate for each department
4. Use the departmental overhead rates to assign costs to cost objects