The choices below depict ﬁve costs of Garﬁeld Industries and a possible driver for each cost.Which of these choices likely contains an inappropriate cost driver?
A)Manufacturing overhead incurred in a heavily automated facility; direct labor hours.
B)Sales commissions; gross sales revenue.
C)Gasoline consumed; number of miles driven.
D)Building maintenance cost; building square footage.
E)Human resources department cost; number of employees.

Question

Quizplus · Accepted Answer

In a heavily automated facility, manufacturing overhead is more likely driven by machine hours rather than direct labor hours, as automation reduces the reliance on direct labor.

The Choices Below Depict ﬁVe Costs of Garﬁeld Industries and a Possible