As manufacturing overhead costs cannot be traced to products a method must be developed for assigning them to products.Common bases for assignment are all of the following except:

Question

Quizplus · Accepted Answer

Direct labour hours plus direct machine hours is the most commonly used base for assigning manufacturing overhead costs to products. The other bases listed (direct labour cost, direct labour hours, and machine hours) are also used but may not provide an accurate reflection of actual manufacturing overhead costs.

As Manufacturing Overhead Costs Cannot Be Traced to Products a Method