Young Company is beginning operations and is considering three alternative ways in which
to allocate manufacturing overhead to individual units produced. Young can use a plantwide
rate, departmental rates, or activity-based costing. Young will produce many types of
products in its single plant, and not all products will be processed through all departments.
In which one of the following independent situations would reported net income for the first
year be the same regardless of which overhead allocation method had been selected?