Dawson Company manufactures small table lamps and desk lamps. The following shows the activities per product and the total overhead information:
-Activity-based costing can be beneficial in allocating selling and administrative expenses to various products for managerial decision making. Which of the following would be the best allocation base for help desk costs?

Question

Dawson Company manufactures small table lamps and desk lamps. The following shows the activities per product and the total overhead information:   ​
-Activity-based costing can be beneficial in allocating selling and administrative expenses to various products for managerial decision making. Which of the following would be the best allocation base for help desk costs?

Quizplus · Accepted Answer

The number of calls is the best allocation base for help desk costs because it directly correlates with the level of activity and resources used by the help desk, providing a more accurate method for allocating costs to various products based on the support required.

Dawson Company Manufactures Small Table Lamps and Desk Lamps