What overhead driver might best relate to the total overhead cost of Minerals Quality Control,a highly labour intensive operating division of BHP Billiton,a large mining company?

Question

Quizplus · Accepted Answer

Since Minerals Quality Control is a highly labour intensive operating division, the inspection hours would be the best overhead driver to relate to the total overhead cost. The more time spent on inspections, the higher the total overhead cost is likely to be. Floor space and equipment values may not be as relevant in this context, and machine hours may not accurately capture the labor intensity of the operations.

What Overhead Driver Might Best Relate to the Total Overhead