For job costing in service industries, overhead costs are usually applied to jobs based on:

Question

Quizplus · Accepted Answer

Since service industries do not involve traditional manufacturing or factory overhead costs, job costing in service industries usually applies overhead costs based on direct labor-hours or dollars. This is because labor tends to be the most significant cost in service industries, and therefore, provides the best basis for allocating overhead costs to specific jobs.

For Job Costing in Service Industries, Overhead Costs Are Usually