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in this video weamp;#39;re going to talk about how to allocate the costs of a support department by using the single rate method so letamp;#39;s say that we have an auto manufacturer with two operating divisions and we manufacture cars and trucks right each is a separate division but we have this support department which is Our IT department right our information technology our Tech Specialists and they provide services to each of these departments to the truck division into the car division so weamp;#39;ve got a pool of costs here with it and weamp;#39;re trying to determine how do we allocate some of these costs to the car Division and how much do we allocate to the truck division so how will we go about doing that well basically weamp;#39;ve got a number of ways we could do that one is first we could use the budgeted overhead and the budgeted hours to apply it we could also use the actual overhead and the actual hours but then weamp;#39;d have to wait till the end of the year
