When a manufacturing company has a highly automated manufacturing plant producing many different products,what is probably the most appropriate basis of applying overhead costs to work-in-process?
A) Direct labor hours.
B) Direct labor dollars.
C) Machine hours.
D) Cost of materials useD.
Machine hours would more closely reflect the usage of the automated equipment.

Question

Quizplus · Accepted Answer

Machine hours would more closely reflect the usage of the automated equipment.

When a Manufacturing Company Has a Highly Automated Manufacturing Plant