Common allocation bases are
A) direct labor dollars, direct labor hours, direct material dollars
B) direct labor dollars, direct labor hours, machine hours
C) direct labor dollars, direct labor hours, machine dollars
D) machine dollars, direct labor dollars, machine hours

Question

Quizplus · Accepted Answer

Direct labor hours and machine hours are common allocation bases in manufacturing environments as they directly relate to the production process. Direct labor dollars and direct material dollars may be used in certain situations, but they are not as widely applicable as direct labor hours and machine hours. Machine dollars may also be used, but it is not as common as machine hours.

Common Allocation Bases Are