Which of the following is the most reasonable allocation base for a highly mechanized process?

Question

Quizplus · Accepted Answer

A highly mechanized process means that machines are heavily involved in the production process. Therefore, it is reasonable to allocate the overhead costs based on the number of machine hours used, as it reflects the extent of machine usage in the production process. Direct labor hours and direct materials cost may not accurately reflect the overhead costs in this scenario, as there may not be as much human involvement or variation in the materials used. The number of different materials used may also not be a suitable allocation base, as it may not necessarily reflect the overhead costs incurred in the production process.

Which of the Following Is the Most Reasonable Allocation Base