In a department that is drilling holes in materials, which activity base is likely to be most appropriate for assigning overhead costs?
A)units produced
B)direct labor hours
C)machine hours
D)number of batches

Question

Quizplus · Accepted Answer

Since the department is drilling holes in materials, the most appropriate activity base for assigning overhead costs would be machine hours. This is because the cost of machinery usage is likely to be the primary driver of overhead costs in such a department. Therefore, the department can allocate overhead costs based on the number of machine hours used for drilling holes in materials.

In a Department That Is Drilling Holes in Materials, Which