Answer: 4. A company whose products differ in batch size and complexity and consume different amounts of overhead resources.
An overhead rate refers to a single overhead percentage that an industry or a company spends in order to allocate its production costs to goods or services. i.e. the amount of money used by an industry in the production of goods and services to customers.
A company whose products differ in batch size and complexity would be best served by a plant wide overhead rate. This is because assigning plant wide overhead rates will result in an increase in the company’s cost subsidies.