A department that is equipment intensive would most likely use a budgeted factory overhead rate based on which of the following cost drivers:

Question

Quizplus · Accepted Answer

A department that is equipment-intensive would most likely use machine hours as the cost driver for allocating overhead costs. This is because equipment-intensive departments typically require more machine usage to produce goods, and thus the machine hours is the best cost driver to capture the overhead costs accurately.

A Department That Is Equipment Intensive Would Most Likely Use