In a manufacturing company, allocating overhead costs based on direct labor hours, machine hours, or units produced will always lead to the same amounts allocated per unit produced.

Question

Quizplus · Accepted Answer

Allocating overhead costs based on different allocation methods, such as direct labor hours, machine hours, or units produced, will result in different amounts allocated per unit produced. This is because different allocation methods may result in different amounts of overhead costs being allocated to each unit produced.

In a Manufacturing Company, Allocating Overhead Costs Based on Direct