Shubelik Company is changing to an activity-based costing method. They have determined that they will use three cost pools. They are setups, inspections, and assembly. Which of the following would be used as the activity base for assembly?
A) number of direct labor hours
B) number of setups
C) number of inspections
D) number of units to be produced

Question

Quizplus · Accepted Answer

The activity base for assembly is typically the number of direct labor hours, as it reflects the time and effort required to assemble products.

Shubelik Company Is Changing to an Activity-Based Costing Method