Asked by

Sonia Turitz
on Nov 17, 2024

verifed

Verified

Common allocation bases are

A) direct labor dollars, direct labor hours, and direct material dollars
B) direct labor dollars, direct labor hours, and machine hours
C) direct labor dollars, direct labor hours, and machine dollars
D) machine dollars, direct labor dollars, and direct labor hours

Allocation Bases

Criteria or methods used for distributing indirect costs to different products, services, or departments based on predefined factors such as labor hours, machine hours, or material costs.

Direct Labor Hours

Measures the total hours worked by employees directly involved in the production process, used for calculating labor costs and efficiency.

Machine Hours

A measure of the amount of time a machine is operated, used to allocate machine costs to products or job orders.

  • Understand common bases for allocating factory overhead and their implications.
verifed

Verified Answer

DP
Daniel PhillipsNov 23, 2024
Final Answer:
Get Full Answer