Which of the following describes the allocation base for allocating manufacturing overhead costs?

Question

Quizplus · Accepted Answer

The allocation base for manufacturing overhead costs reflects the relationship between the goods produced and the amount of overhead costs incurred. It is a factor that is used to allocate overhead costs to individual units of production based on the level of resource consumption. Examples of allocation bases include direct labor hours, machine hours, and direct material costs. It is important to choose an appropriate allocation base to ensure accurate cost allocation.

Which of the Following Describes the Allocation Base for Allocating