Manufacturing job costing systems are least likely to use which of the following bases to allocate overhead:
A) direct labour hours
B) number of departments
C) direct labour costs
D) machine hours

Question

Quizplus · Accepted Answer

Manufacturing job costing systems typically allocate overhead based on factors directly related to production activities, such as direct labor hours, direct labor costs, and machine hours. The number of departments is not a common basis for allocating overhead because it does not directly relate to the production activity or the resources consumed by a job.

Manufacturing Job Costing Systems Are Least Likely to Use Which